Clifford Chance advises Brazil’s Sabesp on the largest blue bond issuance out of Latin America and the first B-Bond to be issued in Brazil.

Global law firm Clifford Chance advised Companhia de Saneamento Básico do Estado de São Paulo (Sabesp), the Brazilian water and waste management company, on an innovative US$1.5 billion A/B Bond financing.  The Inter-American Investment Corporation (IDB Invest) was the lender of record on the US$150 million Term Loan A and the US$1.35 billion Term Loan B.  Nova Securitisation, a special purpose vehicle incorporated in Luxembourg, used the proceeds of the US$850 million 5.750% Blue Senior Notes due 2031 and the US$500 million 6.500% Blue Senior Secured Notes due 2036 to purchase a participation in Term Loan B.  The notes were listed on the Luxembourg Stock Exchange.

The proceeds will support Sabesp’s commitment to achieving universal basic sanitation targets in the state of São Paulo, including the improvement of sewage treatment plants and the expansion of collection systems.

This transaction marks the largest blue bond issuance out of Latin America and the first B-Bond to be issued in Brazil. The bond includes a US$150 million A Loan maturing in 2038 and a US$1.35 billion B Loan to be disbursed in stages, with maturities in 2031 and 2036.

The cross-border team was led by Capital Markets counsel Anja Pfleger-Andrade in São Paulo, with the support of partner Jon Zonis in New York, and included:

• Capital Markets: Associate Joyce Moore in New York, Cristian Ragucci, staff attorney Guilherme Laudisio, and intern João Eduardo de Godoy Pereira in São Paulo
• Structure Debt: Partner Marc Mehlen, senior associate Marie-Elise Gueble and trainee lawyer Victor Leon Hilbertz in Luxembourg
• Tax: Partner Avrohom Gelber in New York and Associate Kade Moural in Houston

Pfleger Andrade commented, “We are delighted to have supported Sabesp on this milestone transaction, which stands as the largest blue bond issued in Latin America and Brazil’s first‑ever B‑bond.”

Clifford Chance advises on many offerings in the Brazilian market, including Banco Bradesco's US$750 million bond issuance, Brazil's Sabesp's first ever corporate blue bond issuance by a company in Latin America, and Itaú Unibanco and Banco Bradesco's senior notes offering and sustainability-linked private placement.