Neoenergia Signs “Super Green Loan” With IFC, A Green Financing Model Linked to ESG Goals

Loan of R$ 550 million from the International Finance Corporation (IFC) is the first of its kind granted by the global institution to an energy distribution company, and one of the first Sustainability Linked Loans for infrastructure in Brazil and in the energy distribution sector in Latin America

Nasserting

0001 nghĩa là gì

A Neoenergia Coelba, Neoenergia’s distributor in Bahia, and the International Finance Corporation (IFC), a member of the World Bank Group, signed a Super Green Loan worth R$ 550 million with an eight-year term for financing the company’s investment lines (capex) classified as “green.” The funds will be allocated to improvements and expansion of the network and digitalization.

“The ESG agenda is part of Neoenergia’s business strategy and permeates all our actions for sustainable development. Tying this financing to environmental, social, and governance targets brings transparency to our operations and reinforces our commitment to the country’s energy sector,” emphasizes Eduardo Capelastegui, future CEO of Neoenergia starting July 15, 2022.

The Super Green Loan, in addition to being a certified green debt, is a financing linked to ambitious and challenging ESG (Environmental, Social and Governance) targets, which characterizes it as a Sustainability Linked Loan. The agreed targets will be assessed in 2026 and, if met, will reduce the contracted cost of the debt.

“In the year we celebrate the 25th anniversary of Neoenergia, this contract reinforces our performance based on sound financial discipline. The funds strengthen our purpose of operating an effective business model, based on lines of credit with competitive conditions reiterating our strategy of diversifying funding sources to support the development of our business plan,” states Leonardo Gadelha, Executive Director of Finance and Investor Relations at Neoenergia.

Among the environmental and gender targets set out in the contract, Neoenergia commits to reduce the carbon emissions index in its units, reaching emissions below 50g of CO2/KW generated by 2026, and to promote the inclusion of women in the electricity sector, achieving 10.7% of women electricians in Neoenergia by 2026.

To increase women’s participation in society, the company offers opportunities at the School of Electricians, with exclusive classes and a percentage reserved for women in mixed courses. It is worth noting that Neoenergia has already trained more than 400 women through the program, and around 270 have been hired by the Group’s distributors since the project’s inception in 2017.

“This innovative financing is aligned with IFC’s energy strategy in Brazil, which identifies transmission and distribution as a key segment for the decarbonization of the energy sector. Additionally, by supporting an important player like Neoenergia Coelba, IFC sends a positive signal to the market, increasing the competitiveness of the private sector in Brazil,” states Carlos Leiria Pinto, General Manager of IFC in Brazil.

About NEOENERGIA

A publicly traded company with shares (NEOE3) listed on the São Paulo Stock Exchange. Part of the Spanish group Iberdrola, the company has been operating in Brazil since 1997, currently being one of the leaders in the country’s electric sector. Present in 18 states and the Federal District, its business operations are divided among generation, transmission, distribution, and commercialization. Its distributors, Neoenergia Coelba (BA), Neoenergia Pernambuco (PE), Neoenergia Cosern (RN), Neoenergia Elektro (SP/MS), and Neoenergia Brasília (DF) serve more than 15 million customers, equivalent to a population of over 37 million people.

Neoenergia has 4 GW of installed capacity in generation, 88% of which is renewable energy, and is implementing an additional 0.7 GW with the construction of new wind and solar parks. In transmission, there are 2,300 km of lines in operation and 4,300 km under construction. Through the Neoenergia Institute, it promotes sustainable development through socio-environmental actions and thus contributes to improving the quality of life in the communities where the company operates, especially for the most vulnerable people, always aiming for sustainable development. As part of its commitment to increase women’s participation in society, the company supports the Brazilian women’s football teams and the Brasileirão Feminino Neoenergia championship. Since January 2021, it has been part of the portfolio of the Corporate Sustainability Index of B3 – Brazil, Bolsa, Balcão – which brings together companies with the best practices in corporate governance and sustainability.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, technical expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2021, IFC allocated a record amount of US$ 31.5 billion to private companies and financial institutions in developing countries, thus leveraging the power of the private sector to eradicate extreme poverty and boost shared prosperity while economies respond to the impacts of the Covid-19 pandemic. For more information, visit http://www.ifc.org.

Source: Neoenergia Press