White & Case Advises Aegea Saneamento e Participações S.A. and Águas Do Rio on R$1.5 Billion Financing for Landmark Clean Water and Sanitation Initiative

Global law firm White & Case LLP has advised Aegea Saneamento e Participações S.A. and Águas do Rio 1 and Águas do Rio 4 concessionaires (jointly Águas do Rio) on a R$1.5 billion (approximately US$300 million) financing provided by IDB Invest, including a R$500 million (approximately US$100 million) guarantee from Proparco for the benefit of IDB Invest, to strengthen water and sanitation services in the State of Rio de Janeiro in Brazil.

The financing is part of a complex multi-source transaction involving, beyond IDB Invest and Proparco, the Brazilian Banco Nacional de Desenvolvimento Econômico e Social, BTG Pactual S.A. under Caixa Econômica Federal's program Saneamento Para Todos (SpT) and local capital markets.

Águas do Rio 1 and Águas do Rio 4 are concessions of the Aegea group, Brazil's largest private sanitation company. The Águas do Rio special purpose entities (SPEs) represent one of the most significant investments in the water and sanitation sector in Brazil.

Under the terms of the agreement, the Águas do Rio SPEs secured a long-term project financing package in connection with capital expenditure requirements in various municipalities of the State of Rio de Janeiro pursuant to concession agreements obtained with the State of Rio de Janeiro. This is the largest project financing in the sanitation sector in Brazil, with an aggregate principal amount of R$25.5 billion (approximately US$5.1 billion).

Upon completion, the Águas do Rio SPEs are expected to reach approximately ten million people in 27 municipalities in the State of Rio de Janeiro, including vulnerable communities. The projects include rehabilitation, maintenance and expansion of sanitation and water distribution infrastructures, including new water and sewage pipes.

The White & Case team was led by Capital Markets partner John Guzman (São Paulo) and Project Development and Finance partner Evelyn Balassiano, and included Project Development and Finance partner Thomas Pate (both in New York); and Capital Markets associates Monaliza da Silva (New York) and Clara Silva (São Paulo). International Law Clerk Adam Conwell also assisted on the matter.

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