Company raises US$ 500 million through sustainability-linked bonds (SLB) and announces its commitment to three sustainability targets

Underscoring its focus on financial discipline and management of capital structure and in line with its commitment to sustainability and its evolution on the ESG agenda, Aegea, through its subsidiary Aegea Finance, has raised US$500 million through the issue of sustainability-linked bonds (SLB). SLBs are debt instruments linked to the achievement of sustainability goals and whose financial characteristics are linked to these commitments agreed to between the parties.

With this initiative, the company becomes the first in the sector to issue long-term bonds whose covenants are linked to the achievement of social and environmental goals in Latin America, and is the pioneer in Brazil to commit to targets on racial diversity in leadership positions.

“The conclusion of this issue reaffirms the confidence of the capital markets in our business model and our execution capacity.  The issue is part of our capital management strategy focused on lengthening the average term of our debt considering our growth strategy. With this funding operation, we will continue our existing social and environmental commitment by providing universal access to water and sewage services in the towns where we operate and go beyond our contractual obligations.  We will continue to work in a transparent manner and now, are further committed to three challenging targets aimed at ESG initiatives involving all the links of our value chain – from investors to the population that benefits from our services and actions,” highlights André Pires, CFO of Aegea Saneamento.

Aegea has set targets that underline its vision of sustainable and efficient operations, and initiatives that value diversity.  There are three SLB targets that must be achieved by 2030:

Energy consumption: reduction of energy consumption, measured in kWh/m3, by 15%.

“As leaders in the private sanitation sector and by placing sustainability and ESG pillars at the center of all our decisions, we understand our responsibility towards increasing the efficiency of our operations in order to make better use of natural resources.  Our electricity matrix already consists of 94% renewable sources and we will further reduce our energy consumption significantly. This reduction target is important in our long-term business sustainability pillar and will further drive the progress we have already made in the concessions where we operate.  Significant investments are being made in loss reduction programs and in more efficient technologies in the processes,” says Radamés Casseb, CEO of Aegea Saneamento.

Currently, the company has a comprehensive Energy Efficiency and Water Loss Reduction Program.  Last year, the reduction in the loss rate represented about 39 billion liters of water saved, which is enough to supply 970,000 people for one year.

Women in leadership: Increase the number of women in leadership positions from 32% to 45%.

Blacks in leadership: Increase the number of blacks in leadership positions from 17% to 27%.

“As a service provider, Aegea wants to reflect in its staff the racial diversity of the population of Brazil, reinforcing society’s trust in its deliveries and operations” adds Radamés.

Since 2017, Aegea has been recognized for its racial diversity initiatives, implemented through the “Respeito Dá o Tom” program, designed to offer equal opportunities for jobs in the company and for professional growth for employees who are self-declared black or brown. This issue is addressed on diverse fronts within the company, including the Aegea Academy, which raises awareness among employees, besides providing training and helping the career development of employees through technical and behavioral training and in preparation for leadership positions.

This funding operation is aligned with the company’s strategy of diversifying its funding sources to ensure solid financial health required to sustain the development of its business model.