Neoenergia, the Brazilian subsidiary of Iberdrola, has obtained support from the World Bank to boost its growth strategy, thanks to a green loan of BRL550 million ($102.4 million) that will be linked in part to increasing the number of women electricians in the company.
Neoenergia began its operations in 1997 and manages eight hydroelectric, 26 wind farms, and the Termopernambuco thermal plant, according to BNamericas.
The loan, which the company will use to continue its growth strategy in the country, has a repayment period of eight years, with a grace period of two years and an interest rate that will be reduced according to various ESG (environmental, social and governance) indicators.
In particular, the price of the financing, granted by the International Finance Corporation (IFC) — part of the World Bank and the world’s largest development institution focused on the private sector in developing countries — is linked to the percentage of women electricians in Neonergia and the reduction of the carbon emissions rate, which will be measured in 2026. If the targets are met, there will be a reduction in the debt spread.
The company has informed the Comissão de Valores Mobiliários (CVM) that “the financing agreement reinforces the company’s broad access to credit lines at competitive costs and conditions, in line with its strategy of diversifying funding sources to support the development of its business plan.”
Through its commitment to the United Nations Sustainable Development Goals (SDGs), the company aims to reduce its CO2 emissions intensity by up to 50% by 2030, with 2007 as the base year.
Neonergia has said it will triple its portfolio of wind assets this year to 1,600 MW, and 90% of its total capacity will be green. In the first quarter of 2022, it boosted its investments in renewables in Brazil by 75% to BRL808 million ($150.4 million). The company has 5,300 MW of renewable capacity installed, 80% of which are green.
Iberdrola controls 53.4% of Neonergia, which debuted on the Brazilian Stock Exchange in July 2019 and has become one of the largest listed companies on the São Paulo Stock Exchange.
