A project is expected to expand sewage collection and treatment coverage from 85% to 99% by 2029, benefiting 2.5 million people
It is the largest Blue Bond issuance in history, reaching $1.35 billion
WASHINGTON — IDB Invest has signed a financing agreement with Companhia de Saneamento Básico do Estado de São Paulo (SABESP) to accelerate universal access to sewage collection and treatment services across the State of São Paulo. The project aims at universalization of the service and is expected to raise coverage from 85% to 99% by 2029—four years ahead of Brazil’s national target.
The initiative will improve sanitation services for 2.5 million people. By expanding and modernizing wastewater infrastructure, the project will help improve the treatment of sewage, enhance water quality, and strengthen environmental resilience in Brazil’s most populous state.
The groundbreaking financing package includes an A Loan of up to US$200 million from IDB Invest and a B Bond issuance that totals US$ 1.35 bn coordinated by Goldman Sachs, JP Morgan and Itau BBA, marking Brazil’s first A/B Bond structure and the largest Blue Bond issuance in history.
The A/B bond structure, is designed to attract international institutional investors, diversify SABESP’s funding sources, and secure long-term financing aligned with the company’s investment program. The transaction reflects IDB Invest’s “Originate to share” business model, which leverages its structuring expertise to attract additional private capital and expand the impact of development financing across Latin America and the Caribbean.
In addition to financing, IDB Invest will also advise SABESP on the development of an Environmental and Social Action Plan, supporting SABESP in strengthening governance, sustainability practices, and environmental and social risk management to ensure lasting development impact.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.
About Sabesp
Sabesp is currently the largest sanitation company in Brazil and one of the largest in the world. The company provides water supply, sewage collection, and treatment services to 375 municipalities across the state of São Paulo, serving 29.9 million people with clean water and 27.0 million with sewage services - representing approximately 67% of the state’s urban population. Sabesp’s corporate purpose is to provide basic sanitation services aimed at achieving universal access to sanitation in the State of São Paulo.
https://ri.sabesp.com.br/en/