Signing of Credit Agreement for Mato Grosso do Sul State Water Environment Improvement Project in Brazil (Private Sector Investment Finance): Contributing to the improvement of water and sanitation environment

[Goal 6] Clean Water and Sanitation
SDGs
[Goal 11] Sustainable Cities and Communities
SDGs
[Goal 13] Climate Action
SDGs

2025.12.04

On October 20, 2025, the Japan International Cooperation Agency (JICA) signed a Credit Agreement for Private Sector Investment Finance Project with the Ambiental MS Pantanal SPE S.A. in the Federative Republic of Brazil, and held the signing ceremony on December 2.

The loan is the first private sector investment finance for the water and sewage sector in the Federative Republic of Brazil, which is co-financed with Sumitomo Mitsui Banking Corporation (SMBC), and it is aligned to “Aegea’s 2024 Sustainable Financing Framework,” given the social and environmental contributions of the project (*).

Scene from the ceremony

1. Borrower
Ambiental MS Pantanal SPE S.A.

2. Country (Target Areas)
Federative Republic of Brazil

3. Loan Amount
70 million USD

4. Project Title
Mato Grosso do Sul State Water Environment Improvement Project

5. Project Purpose
The project aims to expand or strengthen the sewage collection and treatment system in the state of Mato Grosso do Sul (MS), Brazil, by constructing, expanding, and upgrading sewage-related facilities, thereby contributing to the improvement of the water and sanitation environment in the MS state.

6. Project Component
The project provides financing for constructing, expanding, and upgrading sewage collection and treatment facilities including related equipment in the MS state.

7. Contribution to SDGs
Goal 6 (Clean water and sanitation)
Goal 11 (Sustainable cities and communities)
Goal 13 (Climate action)

8. Reference
- Aegea Sustainable Financing Framework (the “Framework”)

Aegea’s Sustainable Finance Framework was published in 2024 with the goal of supporting the issuance of sustainable financing instruments that align with Aegea’s sustainability priorities. The Framework is aligned to the Sustainability Bond Guidelines, the Social Bond Principles and Green Bond Principles, published by the International Capital Markets (ICMA); and the Green Loan Principles and Social Loan Principles published by the Loan Markets Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association (LMA/APLMA/LSTA); these are high-level voluntary frameworks of market standards for categorizing loans as “green”, “social” and/or “sustainability” to promote the development and integrity of sustainable finance products.

Aegea’s Sustainable Financing Framework includes a wide range of projects under the following categories: sustainable water and wastewater management, renewable energy, pollution prevention and control, terrestrial and aquatic biodiversity, affordable basic infrastructure and socioeconomic advancement and empowerment, evidencing the integration of sustainability to its business strategy.

JICA will continue to collaborate with SMBC to mobilize private funds to developing countries and further contribute to their socio-economic development.

(*) Sustainable Finance refers to the financing activities that include environmental and/or social considerations, to support the alignment of capital flows with sustainability objectives.

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