Sabesp Raises BRL600m

Sao Paulo water utility Sabesp has raised BRL600m in 1.5-year bonds in Brazil’s domestic market. The issue pays DI plus 0.65% until March, DI plus 0.75% until August, DI plus 0.85% until March 2012 and then DI plus 1.25% until maturity in August 2012. Banco do Brasil, HSBC and Santander managed the sale, and bought it. Proceeds will repay old debt. Sabesp is also set to sell the third and final installment, of BRL275.37m, of a BRL826m issuance of 11-year bonds to BNDES. Proceeds will fund Sabesp’s BRL1bn investment plan, including 5 projects to build and upgrade waste systems, and make water systems more efficient and less energy-intensive. The company is rated A+ on a national scale.