The water company, Aegea, has received the first disbursement of its loan approved under the Brazilian Reais Local Currency Initiative that aims to eliminate foreign exchange risk exposure in tariff-sensitive infrastructure projects. The Inter-American Investment Corporation (IIC) made the first disbursement of a 320 million Brazilian reais (US$92 million) loan. The money will support Aegea’s water and sanitation network expansion and the improvement of operational performance. The company has 40 concessions in 44 cities across Brazil. By providing financing in Brazilian reais under longer tenors, the IIC helps to enhance Aegea’s financial sustainability, offering a loan term aligned with the long-term nature of the company’s investments. The 12-year door-to-door loan in local currency will avoid exposing the company’s debt to foreign exchange fluctuations.
