REM project financing completed with a $1.28 billion loan

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REM route

CANADA: Canada Infrastructure Bank and CDPQ Infra, a wholly owned subsidiary of Caisse de dépôt et placement du Québec, have reached a business agreement on the investment by Canada Infrastructure Bank in the Réseau express métropolitain project (REM) in Montréal, a 67-km, light rail, high-frequency network linking Montreal Trudeau Airport with the city centre.

The $1.28-billion investment completes the project’s $6.3-billion financing. The agreement is subject to the execution of the final documentation.

“We are pleased to participate in the funding of this important public infrastructure project,” said Pierre Lavallée, President and CEO of Canada Infrastructure Bank. “Public transit is one of our priority areas. Our role is to invest alongside private sector and institutional investors, and other public-sector partners to facilitate the development of strategic projects like the REM.”

“We are very pleased to welcome the Canada Infrastructure Bank as a partner in the REM project. With this $1.28-billion investment, the REM’s financing is now fully completed. The construction of the project is progressing well and will intensify in the fall,” said Macky Tall, President and CEO, CDPQ Infra.

Construction of the REM began in April 2018. The first trains are scheduled to run in the summer of 2021.Given that the Canada Infrastructure Bank’s investment takes the form of a loan, CDPQ Infra’s equity stake in the REM project will be approximately 70% and the Government of Québec’s stake will be approximately 30%.