Historic - Igua

We began our activities in June 2006, always operating through concessions and partnerships with Municipalities, States and public companies, with the aim of universalizing the population’s access to quality water and sewage collection and treatment.
In 2007, through a full concession valid for 30 years, Empresa de Saneamento de Veneza – ESAP S.A. took over water and sewage treatment services in the Municipality of Palestine.
In 2008, through a full concession valid for 30 years, Saneamento de Mirassol –Sanessol S.A. took over the water supply and sewage services in the Municipality of Mirassol. Also in 2008, through a full concession valid for 30 years, Paranaguá Saneamento S.A. took over the water supply and sewage services in the Municipality of Paranaguá.
Still in 2008, Guaratinguetá Saneamento S.A., through a public-private partnership (“PPP”) entered into with the Guaratinguetá Water, Sewage and Waste Service Company – SAEG, took over the operation of the sanitary sewage system in the City of Guaratinguetá , in Sao Paulo. The PPP has a duration of 30 years.
In 2008, SPAT Saneamento S.A. was created through a PPP with Companhia de Saneamento Básico do Estado de São Paulo – SABESP (“SABESP”) to expand the Alto Tietê Production System, with the respective provision of auxiliary services to SABESP. The concession period for this contract is 15 years.
In 2009, we acquired another four concessions for water supply and/or sewage supply, in the State of Mato Grosso, in the cities of Colíder, Alta Floresta, Pontes e Lacerda and Comodoro. The term of such concessions is also 30 years.
In 2010, we acquired two concessions in the cities of Piquete (SP) and Canarana (MT), both for a period of 30 years. In the same year, in partnership with SABESP, with a term of 30 years, two other water and sewage concessions were incorporated, in the cities of Andradina (SP) and Castilho (SP). Currently, Castilho is one of the few cities in the country that have achieved universal water and sewage supply for its citizens.
In 2012, BNDES Participações S.A. (“BNDESPAR”) joined our corporate structure, through the acquisition of 33.42% of our share capital. Still in 2012, three more full water and sewage concessions were taken over in the cities of Cuiabá (MT), Itapoá (SC) and Tubarão (SC) and two new administrative PPPs, Agreste Saneamento S.A., in Alagoas, and Atibaia Saneamento S.A., in São Paulo. The average duration of such contracts is 30 years.
On November 17, 2016, an Investment Agreement was signed for the restructuring of our financial debt. The agreement established the renegotiation of the debts of the various creditors and the entry of a new investor who contributed R$70 million to the new equity investment fund, controlled by RKP BRL Investments I LLC, renamed IG4 Water Investments LP (“IG4 Water” ).
On July 19, 2017, after complying with all the conditions of the Investment Agreement, Galvão Participações S.A. (our former controlling company) transferred its shares to Iguá Fundo de Investimento em Participações Multiestratégia (“FIP IGUÁ”) and the fund passed under our control. The following day, an Extraordinary General Meeting was held approving the subscription and payment of 68,169,768 registered common shares, with no par value, by FIP IGUÁ, which now holds 108,958,689 shares, representing 84.2% of the share capital . BNDESPAR maintained the same number of shares (20,477,816 shares), having its participation diluted to 15.8% of the share capital. At that same Assembly, the change of our corporate name to Iguá Saneamento S.A. was approved.
After the restructuring, we started a new business and governance model. A plan was established with 16 strategic initiatives developed in 2017.
On February 27, 2018, we expanded our shareholding in the group’s six operations in the State of Mato Grosso: Alta Floresta, Canarana, Colíder, Comodoro, Cuiabá and Pontes e Lacerda. At that time, we acquired the shares that belonged to the minority partner and assumed 100% of the aforementioned operations. As a result of the fulfillment of the actions provided for in the Investment Agreement signed on July 30, 2018 between our Company, FIP IGUÁ, our current controlling shareholder, IG4 Water and affiliates of the Alberta Investment Management Corporation (“AIMCo”), concluded a transaction which involved an investment of up to R$400 million in our Company, according to a relevant fact published on October 31, 2018. The resources are being allocated to investments to meet contractual goals and the search for new opportunities in the sanitation sector across the country. The operation also contributed to strengthening our capital structure through primary capital contributions, which improved liquidity and leverage ratios and provides greater capacity, agility and flexibility for making investments, in addition to helping to improve our governance. corporate, as it brought an investor with a qualified profile to our corporate structure.
In November 2018, the Iguá Sustainability Institute (“Iguá Institute”) was launched. The Iguá Institute is a non-profit association, under private law, created independently, acting in synergy with other companies, investors and civil society and government organizations, multiplying the impact of its activities and seeking ways to contribute to universalization sanitation in Brazil through the promotion of innovation and education for sustainable development. In December 2018, Iguá Lab was voted the most innovative idea of the year at the PPP Awards, the most relevant PPP award in the country. Launched in April 2018 by us in partnership with BrazilLAB and Aceleradora Orgânica, Iguá Lab received 90 solutions developed by startups for five major challenges faced by sanitation companies in Brazil: default, water loss, communication with customers, employee training and technology. Iguá Lab concretely illustrates our innovative mentality, one of the pillars of our strategic vision and which represents the core of our new DNA.
In April 2021, the Investment Agreement was signed between Iguá Fundo de Investimento em Participações Multiestratégia, Mayim Fundo de Investimento em Participações Multiestratégia, IG4 Water Investments LP, PIP6GV Agua Ltd., PIP6PX Agua Ltd., PIP6PX Agua II Ltd. and PIP6PX Agua III Ltd. (affiliates of Alberta Investment Management Corporation or “AIMCo”), and Canada Pension Plan Investment Board (“CPP Investments”). In this way, with the fulfillment of the conditions set out in the Investment Agreement and the exercise of BNDESPAR’s preemptive right: (i) an investment of R$596 million was made in the Company, through the subscription of new common shares issued by the Company, which received contributions from CPP Investments, AIMCo and BNDESPAR; and (ii) the participation of minority shareholders of the Company was acquired by CPP Investments through the purchase of common shares issued by the Company and quotas representing FIP Iguá. Control of the Company will continue to be held by FIP Iguá, managed by IG4 Capital Investimentos Ltda., therefore there will be no transfer of control in the transaction.
On April 30, 2021, the Company was crowned winner of Block 02 of International Competition No. 01/2020, promoted by the Companhia Estadual de Águas e Esgotos do Rio de Janeiro – CEDAE, held at B3, whose purpose is the concession of the provision regionalization of public water supply and sewage services and complementary services in the neighborhoods of Jacarepaguá and Barra da Tijuca in the capital Rio de Janeiro, and in the municipalities of Miguel Pereira and Paty do Alferes. The Concession Contract will have a term of 35 years and will benefit approximately 1.2 million inhabitants. This achievement is a milestone in the Company’s growth plan, reinforcing not only its position as one of the leaders in the sanitation sector in Brazil, but also its strategy of being the best sanitation company in the country.
In July 2021, the Company issued Convertible Debentures worth R$877 million and, after the CEDAE auction, the company’s shareholders agreed to a capital increase of R$1.52 billion.
In June 2023, Iguá Rio issued infrastructure debentures worth R$3.8 billion. The issue had the support of several financial institutions, including XP, which was the lead coordinator, BTG, Bradesco, Itaú, UBS-Banco do Brasil and Banco Votorantim. Furthermore, the issue was supported by BNDES, which invested R$1.8 billion in the securities. The debentures were widely demanded, with the first series, valued at R$2 billion and with a term of 20 years, presenting demand 1.6 times greater than supply. The second series has a term of 29 years and was fully subscribed by BNDES. The success of the issue reflects Iguá’s solid positioning and its ability to attract investors and access quality credit in the market, to finance its investments and expansion.