BNDES to provide US$249mn for Sanepar via bond issue

- Thursday, June 9, 2011

BNDES to provide US$249mn for Sanepar via bond issue

Brazil's national development bank BNDES will provide 395mn reais (US$249mn) in financing for Paraná state water utility Sanepar via non-convertible bonds.

The bank and its equity arm BNDESPar will disburse funds for projects that fall under the national growth acceleration plan (PAC) and will be carried out over the next three years, the bank said in a release.

BNDES will issue 7,000 bonds valued at 277mn reais and BNDESPar will issue 3,000 bonds worth 118mn reais.

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The money will be used to support four investment groups which total 465mn reais. Sanepar has earmarked 233mn reais for sewerage, 119mn reais for water supply works, 96mn reais for institutional development, and 17mn reais for studies and executive projects.

The works are part of Sanepar's goal to maintain 100% potable water coverage for the urban population in its service area. In terms of wastewater collection and treatment, the utility aims to reach 80% coverage in cities with more than 50,000 people and 65% in those with 50,000 or less.