Sabesp board approves $600 million loan from IFC
Sabesp - Unidade de Negócio Oeste. Distrito de Vila Leopoldina, São Paulo, SP, Brasil.
Sabesp announced this week that its Board of Directors has authorised the company to secure a second round of financing from the International Finance Corporation (IFC), a member of the World Bank Group, according to CNN Brasil.
The loan will be for up to US$600 million, with a term of up to five years and a four-year grace period. Interest payments will be made semiannually.
The funds will be used to invest in basic sanitation infrastructure in the São Paulo metropolitan region, as part of the "Integra Tietê" program.
For the euro-denominated portion of the loan, the interest rate will be Euribor plus 1.85% per year. For the U.S. dollar portion, the rate will be SOFR plus 1.80% per year.
Launched by the São Paulo state government in 2023, the Integra Tietê program aims to revitalize the Tietê River and its tributaries.
