Neoenergia, the Brazilian subsidiary of the Spanish company Iberdrola, which operates in the segments of energy distribution, generation, transmission and commercialization, carried out the first financing operation under the Eco Invest Program.
The company raised R$1 billion through the issuance of green debentures. The funds will be allocated to the distributors Neoenergia Coelba, in Bahia, and Neoenergia Elektro, which operates in São Paulo and Mato Grosso do Sul. Bradesco coordinated the operation.
Eco Invest is a federal government program focused on financing the energy transition, with an emphasis on attracting private capital, especially international capital, for initiatives aligned with the climate agenda and the decarbonization of the Brazilian economy.
In practice, the program functions as a risk mitigation and financial leverage tool, through mechanisms such as guarantees. For companies seeking financing through Eco Invest, one of the main benefits is the reduction in the cost of capital.
According to neoenergyThe resources will be applied to the modernization of electrical networks in the concession areas of the distributors, including the implementation of smart grid technologies, the renovation of substations and wiring, as well as the undergrounding of power lines currently exposed to weather risks.
Burying the networks is a measure that helps reduce the impacts of extreme weather events, such as the one that occurred in São Paulo last Wednesday (10), when winds close to 100 km/h knocked down Trees on the Enel SP power grid.
At the time, approximately 2,2 million properties were left without power. Five days later, the utility company reported that service had been restored.
Investment will increase efficiency.
According to Neoenergia, the investments should increase network efficiency, reduce technical losses, and contribute to the reduction of greenhouse gas emissions, in line with the criteria of the Eco Invest Program. The debentures have a term of ten years, with semi-annual interest payments to investors.
“This funding recognizes the solidity of our investment plan, focused on modernization, digitalization, and grid resilience. The resources will finance projects that increase system reliability and reduce GHG emissions, one of the central pillars of our sustainability strategy,” says Eduardo Capelastegui, CEO of Neoenergia.
According to Caio Andrade Cesar, head of ESG at Bradesco BBI, aligning the fundraising with the Eco Invest Program brought financial gains. "In addition to the benefits for the fundraising strategy, the operation reinforces the bank's commitment to directing capital to projects that drive the climate transition and generate positive socio-environmental impacts, considering the program's requirements," he stated.
Weather caused 43% of power transmission failures between 2014 and 2023
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