IDB Invest’s €144 Million Financing To Companhia de Saneamento Básico do Estado de São Paulo


Clifford Chance advised IDB Invest on the deal.

The financing consists of two tranches. The first tranche has a 14-year tenor, with a portion of this tranche allocated to fund Sabesp’s capital expenditures for five treatment plants. These plants will contribute to the depollution of the Pinheiros River. The result of the depollution and ongoing benefit of the treatment plants will promote an improved healthy environment in the surrounding areas and will benefit more than 260,000 inhabitants. Proceeds from the first tranche will also be allocated to fund the implementation of 73MW of distributed solar capacity in 33 of Sabesp’s existing water treatment plants.

The second tranche has a 10-year tenor and will refinance a portion of Sabesp’s debt denominated in foreign currency to reduce the company’s exposure to foreign exchange variations.

In addition to the ongoing environmental benefits, the construction and operation of the water treatment plant and solar energy capacity will result in the creation of 700 new jobs.

The Firm’s team was led by partner Fabricio Longhin (Picture) in Washington, DC. Associates Patricio Abal (São Paulo) and Pascual Mendez (Washington, DC) provided support.

Involved fees earner: Patricio Abal – Clifford Chance; Fabricio Longhin – Clifford Chance;

Law Firms: Clifford Chance;

Clients: IDB Invest;

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Author: Ambrogio Visconti