Sanepar Places BNDES Credit

Companhia de Saneamento do Parana (Sanepar) has placed BRL395m ($252.23m) in debentures with Brazilian development bank BNDES as it moves to cover a BRL464m capex plan. The 2024 bonds are divided into three series. A BRL158m tranche pays the long-term interest rate TJLP+1.92%, and amortizes monthly from Sept 2014. A BRL118.5m tranche, meanwhile, pays the consumer price index IPCA+1.92% and amortizes annually from 2015. Proceeds will fund a plan to upgrade water treatment systems serving 99 cities, which is also being financed by BRL69m of Sanepar’s own resources. Sanepar is rated A3 on a national scale.