CPPIB, Alberta Plan Invest Nearly $2 Billion in BAI Communications

The Canada Pension Plan Investment Board (CPPIB) and Alberta Investment Management Corporation (AIMCo) have made a $1.9 billion (C$2.4 billion) follow-up investment into telecommunications infrastructure firm BAI Communications, just as it’s expanding its 5G rollout capabilities.

On Monday, BAI disclosed that it has acquired Mobilitie, the largest privately held telecommunications infrastructure company in the US, which also supplies 5G connectivity. The purchase of the California-based firm will allow BAI to expand coast to coast in the US. BAI already operates several large wireless infrastructure projects in the country, notably in the New York City subway system.

BAI has also recently partnered with Transport for London (TfL), a government body in the greater London area in the UK. The London Underground is expected to get full phone coverage by 2024, thanks to the partnership with BAI. A fiber optic network to support the 4G and 5G connectivity throughout the city’s homes and businesses is also forthcoming.

“We continue to see strong potential in BAI Communications’ vision,” Scott Lawrence, managing director and head of infrastructure at CPPIB, said in a statement. “The acquisition of Mobilitie and establishment of a long-term partnership with TfL represent attractive opportunities for CPP Investments to increase its financial commitment to BAI and the digital infrastructure sector more broadly.”

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The deepening commitment by CPPIB and AIMCo will allow the Australia-based BAI to expand its business globally. CPPIB has been investing in BAI for more than a decade, since which the firm has expanded to the US, Canada, Hong Kong, and the UK.

The allocator, with US$402.8 billion (C$497.2 billion) in assets, is a majority shareholder, with an 86% stake in the company. AIMCo, with US$104.5 billion (C$129 billion) in assets, is a minority stakeholder in the firm.

Interest in telecommunications infrastructure has grown with the global onset of 5G. The faster connectivity speed is expected to remake whole industries, including by supporting autonomous driving, smart homes, the storage and sharing of personal data, as well as the advancement of artificial intelligence (AI).

Spending in telecommunication services is expected to grow by about 1% this year, after the pandemic purportedly curtailed spending last year, according to data firm Statista.

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Tags: 5G, AIMCo, Alberta Investment Management Corporation, Asset, Asset Management, auction, Canada Pension Plan Investment Board, CPPIB, wireless

The UK’s Financial Conduct Authority (FCA) is seeking input on proposals on climate-related disclosure rules the regulator recently published for listed companies and certain regulated firms.

The FCA is consulting on proposals to extend the application of its climate-related disclosure requirements to issuers of standard listed equity shares. It is also looking for feedback on select environmental, social, and governance (ESG) topics in capital markets. The FCA said the proposals will directly affect issuers of standard listed equity shares, excluding standard listed investment entities and shell companies, and may also impact issuers of other listed securities.

The regulator is looking for feedback from a wide range of stakeholders, such as law firms, corporate finance advisers, investors, asset owners, accountants, auditors, second-party opinion providers, ESG data and rating providers, industry groups, trade associations, civil society groups, industry experts, academics, and regulatory bodies.

It said effective capital markets rely on good corporate disclosures, and that high-quality information on companies’ exposure to climate-related risks and opportunities is increasingly important to informed asset pricing and allocation of capital to support the transition to a net-zero economy.

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“By introducing our proposals, we would be creating a regulatory framework that aims to ensure in-scope financial services firms contribute to wider government aims to achieve a net-zero economy by 2050,” the FCA said in its consultation paper.

The FCA said “high-quality information” on how climate-related risks and opportunities are being managed will help investors make better informed decisions, adding that it should improve competition in the interests of consumers, protect consumers from unsuitable products, and push investment toward greener projects and activities. It said it is looking for three main results: better outcomes for clients and consumers; deeper consideration of climate-related risks and opportunities by firms; and coordinated information flow along the investment chain.

The FCA said it is also looking for input on other ESG issues in capital markets, including green and sustainable debt markets and the increasingly important role of ESG data and rating providers.

The FCA is inviting feedback until Sept. 10 and said it will confirm its final policy on climate-related disclosures before the end of this year. The regulator also said it will separately consider stakeholder views on the ESG-related discussion topics in capital markets, with the aim of publishing a feedback statement in the first half of 2022.

“Managing the risks of climate change and transitioning to a cleaner and less carbon-intensive economy will require high-quality information on how climate-related risks and opportunities are being managed throughout the investment chain,” Sheldon Mills, executive director of consumer and competition at the FCA, said in a statement. “However, climate-related disclosures do not yet meet investors’ and market participants’ needs. The new rules will help markets, investors, and ultimately consumers better understand the impact of climate change and make more informed decisions.”