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 billion 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.
