Canada Infrastructure Bank to invest $1.28bn in REM project


August 27, 2018 –  Canada Infrastructure Bank will invest CAD1.28bn ($980m) in the Réseau express métropolitain (REM) project – a 67km, light rail, high-frequency network with 26 stations – in Montréal.

The Canadian bank and CDPQ Infra, a wholly owned subsidiary of Caisse de dépôt et placement du Québec, entered into an agreement on the investment.

The investment will be made subject to the execution of the final documentation.


The CAD1.28bn ($980m) investment completes the CAD6.3bn ($4.82bn) financing for the project. CDPQ Infra will invest CAD2.95bn ($2.25bn), Government of Québec CAD1.28bn ($980m) and Hydro-Quebec CAD295m ($225m).

The financing also includes CAD512m ($392m) ARTM payment to replace future revenues that CDPQ Infra would have received for the land value capture.

The bank’s investment will be in the form of a 15-year senior secured loan at a rate starting at 1% and increasing to 3% over the term of the loan.

As the Canada Infrastructure Bank’s investment will be in the form of a loan, CDPQ Infra’s equity in the REM project will be approximately 70% and the Government of Québec’s stake will be approximately 30%.

Returns on equity will be 3.7% for the Government of Québec and 8-9% for CDPQ Infra.


Canada Infrastructure Bank president and CEO Pierre Lavallée said: “We are pleased to participate in the funding of this important public infrastructure project.

“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.”

Construction of the REM project began in April 2018 and the first trains are scheduled to operate in 2021.


CDPQ Infra president and CEO Macky Tall said: “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.”



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