Elektro SLL (IFC-47778)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Uninformed
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 9, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ELEKTRO REDES S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 158.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 158.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 15, 2023

Disclosed by Bank Mar 21, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client - Elektro Redes S.A.:

Address: Rua Ary Antenor de Souza, n° 321. Jardim América, Campinas, Brazil
Website: www.neoenergiaelektro.com.br

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries.

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly,  you can submit a complaint at the link above to IFC’s Access to Information Policy Advisor, who reports directly to IFC’s Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org.  You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works