The Suez Lyonnaise des Eaux group is launching an investment company to co-finance equity investments in Latin American projects related to the group’s activities in the field of water production, treatment and distribution.

The new company, Lyonnaise Latin America Water Corporation (LYLAW), is capitalized at US$ 155 million, some 25 percent of which has been contributed by the Suez Lyonnaise des Eaux group. The group’s co-investors are the U.S. financial groups « AIG-GE Capital Latin America Infrastructure Fund », GE Capital and Edison Capital Corporation, the Argentine bank Banco de Galicia, and the Franco-Belgian financial institution Dexia.

LYLAW will contribute to creating a strong network of high-level partners looking to support the expansion of Suez Lyonnaise des Eaux in Latin America.

The Suez Lyonnaise des Eaux group thus intends to continue its policy of balanced risk management of international expansion in emerging countries. The group has already had experience with a similar investment company created in 1995 and focusing on Asia, Lyonnaise Asia Water Limited (LAWL). Capitalized at US$ 300 million, LAWL has already invested half its resources in various projects in China, the Philippines, Malaysia and Macau.

In Latin America, alongside Suez Lyonnaise des Eaux, Lyonnaise Latin American Water Corporation will take advantage of important water-related investment opportunities. Currently, one-quarter of the Latin American population is not connected to drinking water and half is not linked to a wastewater treatment system. According to the World Bank, over the next ten years investment needs for drinking water in that region come to US$ 5 billion, and investment requirements for wastewater treatment total US$ 7 billion.

Suez Lyonnaise des Eaux is world leader in private infrastructure services, managing municipal water systems for Buenos Aires, Santa Fe and Cordoba in Argentina and for the city of La Paz, Bolivia and Limeira, Brazil. It is also present in this capacity in Mexico and Colombia. In Latin America, Suez Lyonnaise des Eaux already serves the drinking water needs of 19 million people and assures water treatment for 14 million.