CAB Ambiental seeks up to US$71mn from IFC for water, sanitation plan

Wednesday, December 14, 2011

Brazilian sanitation firm CAB Ambiental (CAB) has submitted a financing request for up to 130mn reais (US$70.9mn) from the World Bank's International Finance Corporation (IFC) to partially fund a 441mn-real waterworks investment plan.

The company is requesting a 40mn-real corporate loan from IFC, being a combination of A and C loans, as well as a syndicated B loan and/or parallel loans of up to 90mn reais, according to information published on the IFC website.

The funds will be used to improve water and sanitation services in the states of São Paulo, Mato Grosso and Paraná and to develop new concessions and public-private partnerships (PPPs) through 2014.

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IFC's board is due to review the financing request on January 12, the bank said.

CAB Ambiental, which exclusively focuses on municipal water and sanitation concessions and PPPs throughout Brazil, is wholly owned by local group Queiroz Galvão.

The company serves over 5.5mn people through 13 operational subsidiaries in São Paulo, Mato Grosso and Paraná.