CDPQ Makes Bigger Inroads with DP World By Investing $2.5 Billion in UAE Infrastructure

Posted on 06/06/2022

DP World, a subsidiary of Dubai World, is a global infrastructure-led supply chain solutions provider.

Caisse de dépôt et placement du Québec (CDPQ) agreed to invest US$ 2.5 billion in the Jebel Ali Port, the Jebel Ali Free Zone, and the National Industries Park through a new joint venture in which it will hold a stake of approximately 22% (through a sub-concession of up to 35 years), with the remainder of the transaction being financed by debt. Other long-term investors will have the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$ 23 billion for the three assets.

The Jebel Ali Port, Free Zone and National Industries Park together form an integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of US $1.9 billion.

Tranche 1 (US$ 5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to US$ 3 billion) is expected to close during the fourth quarter of 2022.

Keywords: Caisse de depot et placement du Quebec.

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