Saudi Arabia’s Public Investment Fund (PIF) is teaming up with asset management firm Patria Investments to invest in a $1.2bn development project to build a major road in Brazil. The consortium formed by Patria and PIF has secured a 30-year concession for the capacity extension and operation of a toll road project in the Brazilian state of Parana. The project, which represents a relevant capacity boost to Parana’s transport infrastructure, will be overseen by Patria and PIF until 2053. This partnership reflects the growing economic ties between Latin America and GCC countries, and opens up opportunities for GCC nations and sovereign funds to enter Latin America.
The toll road project in Parana is part of the Brazilian government’s official auction, and is one of the largest and most prosperous states in Brazil. The road will stretch 473km, connecting Curitiba to Guarapuava and Ponta Grossa to São José dos Pinhais. Parana, with a population of over 11.5 million people, is ranked as one of the top-five performing states in Brazil with a yearly GDP of $130bn.
Patria Investments, with its extensive knowledge and capabilities in managing a diverse network of assets, has partnered with PIF to tap into the growing appetite for GCC nations and sovereign funds to invest in Latin America. The toll road project also strengthens the economic ties between Saudi Arabia and Brazil, as Brazil has invited Saudi Arabia to join BRICS, the intergovernmental organisation consisting of Brazil, Russia, India, China, and South Africa.
Brazil’s toll road system is an attractive option for foreign direct investment (FDI) platforms looking for opportunities in Latin America’s largest country and most dynamic economy. Toll roads and highways are critical for Brazil’s transport matrix, connecting communities and businesses nationwide. Patria Investments, with its successful investment track record in private equity, infrastructure, real estate, and credit sectors, is an ideal partner for PIF and other GCC partners, financial institutions, and sovereign funds to diversify their portfolios by seeking new investment opportunities.
The partnership between Patria and PIF aligns with Saudi Arabia’s Vision 2030 plan, which aims to explore fresh opportunities and diversify investments. Latin America is experiencing historic levels of FDI, making it an appealing market for sovereign wealth funds like PIF. The CEO of Patria’s infrastructure vertical, Andre Sales, expressed confidence in the toll road asset and highlighted the pipeline of new toll road concessions expected in Brazil and other countries in the region.
This investment reflects a strong conduit between Saudi Arabia and Latin America, and further strengthens the economic ties and cooperation between the two regions. It also showcases the growing appeal of Latin American markets as geopolitical and inflationary safe havens. The toll road project in Parana is a significant step towards boosting the region’s transport infrastructure and promoting economic growth.