The Águas do Rio debenture issuance will be used to expand access to safe drinking water, reduce water losses, and enhance sewage collection and treatment services across 27 municipalities in the State of Rio de Janeiro in Brazil.

Águas do Rio is the largest sanitation project in Brazil and will directly benefit 10 million people, including vulnerable communities. By 2033, the project aims to ensure that 99% of the population has access to drinking water and 90% has sewage collection and treatment, a significant improvement from the previous 87% and 44%, respectively.

Bonds were issued by Águas do Rio special purpose entities created by Aegea Saneamento e Participacoes, a company established to build water networks.

These were part of a broader BRL24.4 billion ($4.8 billion) financing package for the project, developed through the collaboration of IDB Invest and Proparco, which combines local currency solutions with risk-sharing mechanisms to unlock additional funding from BNDES, private banks, and the Brazilian debt capital market.

Additionally, the project includes performance-based incentives of up to $15 million from the UK Sustainable Infrastructure Programme (UK SIP), supporting greenhouse gas mitigation initiatives through structured investment and operational milestones.

The project is expected to bring BRL37 billion in socioeconomic benefits through job creation, improved public health, and increased real estate value.

This landmark financing initiative represents a transformational step forward for Brazil's sanitation sector, showcasing the power of private capital in driving large-scale environmental and social progress, according to the awards entry.