SABESP UCB IV

active

The IFC investment consists of a US$50 million five-year anchor investment in an unsecured blue bond to Companhia de Saneamento Básico do Estado de São Paulo (“SABESP” or the “Company”). SABESP, an existing IFC client since 2022, is the largest water and sanitation service provider in Brazil and among the largest worldwide. The Company, founded in 1973 and recently privatized in Jul-24, provides water and sanitation services to more than 28 million people in 377 municipalities of the State of São Paulo.IFC use of proceeds consist of financing investments related to the Company’s water loss reduction program by funding the replacement of almost 500 thousand obsolete water meters with smart water meters (the “Project”), under a mass replacement program in São Paulo and São José dos Campos, which is projecting to replace 4,4 million outdated meters in total until 2029.Smart water meters offer several advantages for both clients and SABESP such as providing an hourly monitoring once a day to identify and address eventual leaks quickly and enhanced water conservation efforts. SABESP smart meters investment plan 2025-2029 is one of the largest globally and the first in Brazil to rollout smart meters at a large scale. It also contemplates a holistic deployment of AMI linked with ICT solutions (e.g., systems, apps for customers) which supplements its own investments focused on modernizing and expanding the water distribution network.The E&S performance of current investments has been satisfactory based on IFC’s supervision to date.