IFC is considering financing of an 8-year BRL800mn “Green + Sustainability-linked” Loan (to be processed under IFC’s UCL framework) to Elektro Redes S.A. (“Neoenergia Elektro” or the “Company”) capex plan including network upgrade, expansion and loss reduction projects for the 2023 - 2025 period (the “Project”). Neoenergia Elektro, a power distribution company (“DisCo”) is majority-owned by Neoenergia S.A. (“Neoenergia” or the “Sponsor”), which will guarantee the IFC Loan. Neoenergia is one of the largest integrated power utilities in Brazil and is 53,5% owned by Iberdrola as of February 2023.
This is a follow-up investment to the loan to Coelba (DisCo in the state of Bahia) successfully committed in June 2022.Neoenergia Elektro is the thirteenth-largest energy distributor in Brazil in terms of number of clients and has a 3.5% share of the national energy market in Brazil. It operates the concession for distribution of power in 223 municipalities of the state of Sao Paulo (excluding the cities of Sao Paulo, Guarulhos and Campinas, which are the most populated cities in the state), and 5 additional municipalities in the state of Mato Grosso do Sul, covering a concession area of 120.000km² and reaching more than 2.8 million customers in 2022 (c.6 million inhabitants). The use of proceeds of the Corporate Loan is aimed at funding the Company's regulatory capital expenditure (“capex”) items only, including network upgrade, expansion, improvements and loss reduction projects that are eligible under Neoenergia’ s Green Financing Framework, reinforcement, and improvement of the reliability of the electrical system to meet the expected market growth, including substations, renovations and upgrades, as well as automation and telecommunications. The Loan excludes new distribution and high voltage transmission lines.
As stated by the IFC, Neoenergia Elektro is majority-owned by Neoenergia S.A.. Neoenergia is one of the largest integrated power utilities in Brazil, with more than 4.98GW of power generation assets and 2.5 thousand km of transmission lines in operation, as well as five DISCOs serving approximately 16% of the Brazilian population. Neoenergia is 53.5% owned by Iberdrola Group as of February 2023, and it is also listed in the Brazilian Stock Exchange.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|Iberdrola SA||Parent Company||Energy||owns||Neoenergia SA||Parent Company||Energy|
Client - Elektro Redes S.A.:
Address: Rua Ary Antenor de Souza, n° 321. Jardim América, Campinas, Brazil
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