BASA Saneamento Ambiental, a water and sanitation joint venture between Brazil’s BRK and Spanish Acciona, said Monday that it has secured BRL3.9 billion ($400 million) to finance outlays under its new concession in Pernambuco state.
The funds will cover the fee for the concession it won late last year plus some initial investments, said BRK, which is controlled by Canadian investment firm Brookfield, in a securities filing.
Some BRL2.05 billion of the funds will come from blue debentures due 2028, which BASA issued at 1.9% over the DI, an interbank lending rate currently at 14.25%, according to the minutes of a board meeting.
The debentures are supported by sustainable water management principles with by a second party opinion, BRK said in a separate filing.
BASA has also signed a “fully-hedged” two-year international credit line with a pool of banks including Santander, BBVA and BNP Paribas, the minutes said.
The company committed to investing BRL15.4 billion in the Pernambuco concession on top of the BRL3.5 billion concession fee.