Release date: 27 August 2021
Promoter – Financial Intermediary
NEOENERGIA SALocation
Description
Framework Loan to finance renewable energy (wind and solar PV) projects in Brazil, promoted by Neoenergia, a subsidiary of Spain's Iberdrola Group
Additionality and Impact
This 100% climate action Framework Loan aims at partially financing a series of wind parks and a photovoltaic power plant to be constructed in several states of Brazil by Neoenergia, a leading energy provider in the country and part of the Iberdrola Group.
This project addresses the Bank's priority objectives by promoting Renewable Energy, Climate Action, and Environmental Sustainability. It contributes to Brazil's Intended Nationally Determined Contribution agreed at the COP21. In the context of the COVID-19 pandemic's severe impact on the Brazilian economy, this project supports the provision of affordable energy on the country's path to recovery.
Through its Framework Loan structure, this operation offers flexible financing conditions. Neoenergia benefits from a long term and availability and may choose to draw the loan in either EUR or USD with the option of both a fixed and floating interest rate. Furthermore, the EIB's participation ensures the highest standards of social and environmental due diligence and fair procurement procedures, improving bankability with its expertise on the optimal financing structure.
Projects financed by this operation support the expansion of renewable power generation in Brazil, ensuring clean energy at a more affordable price than energy generated from fossil sources.
Objectives
The project is expected to contribute to the External Lending Mandate 2014-2020 objectives including climate change mitigation. The operation is well aligned with the United Nations Sustainable Development Goals 7 (Affordable and Clean Energy) and 13 (Climate Action) and, by mainstreaming job creation, empowerment of woman entrepreneurship and gender equality (as per the promoter's mother company's current policies and future plans), addresses goal 5 (Gender Equality). The operation will also contribute to the EIB's priority objectives for energy sector lending related to renewable energy sources, in line with the EIB's Energy Lending Criteria and its Climate Action objectives.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Under ELM Guarantee
This operation is covered by the ELM Political Risk Guarantee.
Proposed EIB finance (Approximate amount)
EUR 200 million
Total cost (Approximate amount)
EUR 417 million
Environmental aspects
If the plants were located within the EU, they would fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2014/52/EU amending the 2011/92/EU), requiring the competent authorities to determine whether an EIA is required. The capability of the promoter to comply with the EIB's Environmental and Social standards will be assessed as part of the appraisal of the framework loan. The authorisation procedure of each scheme and its compliance with the EIB's Environmental and Social standards and the principles of relevant EU Directives, will be verified at the appraisal of the individual schemes.
Procurement
It is required from the promoter to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement. The EIB will not finance plants for which the procurement process is impacted by local content requirements non-compliant with the above mentioned Guide to Procurement.
Status
Signed - 22/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).