With the issuance, the Company diversifies its capital sources and lengthens its debt profile

Aegea Saneamento, an operator of public sanitation concessions in 48 cities across 10 Brazilian states, through its subsidiary Nascentes do Xingu, successfully raised R$155 million in the capital markets through the issuance of tax-exempt infrastructure debentures. The proceeds from the issuance will be used to expand the water supply system and reduce water distribution losses, as well as to expand the sewage collection and treatment system of the concessionaires Águas de Campo Verde S.A., Saneamento Básico Pedra Preta S.A., Águas de Primavera S.A. and Águas de Sorriso S.A., all located in the state of Mato Grosso.

Through the issuance of infrastructure bonds in the capital markets, only the second in the sanitation industry, Aegea diversifies its capital sources and lengthens its debt maturity profile. The issue, which was attributed a AA(bra) rating by Fitch, matures in 7 years and one month and will be amortized in two installments, in 2023 and 2024.

The infrastructure debentures were issued in accordance with Law 12,431/11, which ensures income tax exemption to foreign or individual investors, aiming at increasing capital funding alternatives and promoting the capital markets as a long-term source of funds, particularly for the infrastructure industry. Only projects considered as a priority by the government are entitled to raise funds under said mechanism.

The issue is consistent with Aegea’s strategy to diversify its capital sources of funding, aiming to strengthen its financial position and support the development of its business model. In addition to raising capital from commercial and development banks, the capital markets and multilateral agencies, Aegea has important international investors, such as the International Finance Corporation (IFC), a member of the World Bank, Singapore’s sovereign investment fund (GIC) and the Global Infrastructure Fund (GIF).