IDB Invest has announced financing of up to 1.0 billion Brazilian reais (about US$190 million) to support the expansion and modernization of water and sanitation services in Sergipe, northeastern Brazil.
The investment will support Iguá Sergipe S.A., the concessionaire responsible for water and wastewater services under a 35-year statewide concession, with the project expected to benefit around 2.3 million people across 74 municipalities.
The financing will be structured through the acquisition of long-term infrastructure debentures issued in local currency by Iguá Sergipe. The model is designed to match the long-term investment needs of the concession, which requires significant upfront spending to expand, operate and modernize water distribution networks, sewage collection systems and wastewater treatment infrastructure.
The development finance institution said the transaction will also contribute to strengthening Brazil’s domestic capital markets for infrastructure investment by supporting the use of local financing instruments.
“By mobilizing long-term local currency financing, we are helping expand reliable water and sanitation services and deliver lasting benefits for communities in Sergipe", Elizabeth Robberechts, Managing Director, Infrastructure and Energy, IDB Invest.
In addition to the financing package, IDB Invest will provide advisory support aimed at reinforcing Iguá Sergipe’s capabilities in operational sustainability, risk management and community engagement, with the objective of supporting long-term service performance across the concession area.
Iguá Saneamento is one of Brazil’s main private water and sanitation operators, serving approximately 6 million people across 121 municipalities in six Brazilian states through concession agreements and public-private partnerships.
The Sergipe investment reflects continued efforts to expand access to essential water and sanitation services in Brazil, while mobilising private-sector capital to help address infrastructure needs in the sector.
