IDB Approves Financing for Brazil’s Sabesp

The IDB has approved a $250m 15-year loan for Sabesp, the water and wastewater company of the state of Sao Paulo, Brazil, to support capital investment. The multilateral will provide Sabesp an A loan of up to $100m from ordinary capital and a syndicated B loan of up to $150m from commercial banks to help finance part of the utility’s 2007–2010 capex program. Funds will also be used to refinance part of Sabesp’s debt, including a eurobond maturing in June 2008. Pricing and terms were not disclosed. The deal is not guaranteed by the sovereign.