IDB Invest Supports Universalization and Modernization of Water and Sanitation Services in Brazil with Iguá Sergipe

WASHINGTON - IDB Invest is supporting a major expansion of water and sanitation services in Brazil's northeastern State of Sergipe, benefiting approximately 2.3 million people through a long-term investment of up to 1.0 billion reais in Iguá Sergipe S.A.

The financing, implemented under a 35-year statewide concession, will support the expansion, operation, and modernization of water distribution and sewage collection and treatment systems across 74 municipalities in the State of Sergipe, Brazil, upgrading infrastructure and improving operational efficiency across urban and non-metropolitan areas.

IDB Invest will acquire up to 1.0 billion reais in long-term, local currency infrastructure debentures issued by Iguá Sergipe, aligning the financing with the investment profile of the concession and supporting the timely execution of a large, front-loaded capital expenditure program. This transaction also represents an important step in strengthening Brazil's domestic capital markets for infrastructure financing.

"By mobilizing long-term local currency financing, we are helping expand reliable water and sanitation services and deliver lasting benefits for communities in Sergipe", Elizabeth Robberechts, Managing Director, Infrastructure and Energy, IDB Invest.

In addition to financing, IDB Invest will support the project through advisory services to strengthen the company's capacity in areas such as operational sustainability, risk management, and community engagement, contributing to long- term service quality and institutional performance across the concession area.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 400 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: https://www.idbinvest.org/en.

About Iguá Saneamento

Iguá Saneamento is one of the leading private water and sanitation companies in Brazil, operating in 121 municipalities across six states: Alagoas, Mato Grosso, Paraná, Rio de Janeiro, São Paulo, and Sergipe. Through concession agreements and public-private partnerships, the company provides water and wastewater services that benefit approximately 6 million people. With a focus on the universalization of basic sanitation in the country, operational efficiency, and the generation of positive social and environmental impact, Iguá makes strategic investments in network expansion, system modernization, and innovation, in addition to educational and sustainability initiatives.