SICREDI SOLAR ENERGY PORTFOLIO FL

Promoteur – Intermédiaire Financier

BANCO COOPERATIVO SICREDI SA

Lieu

• Brésil

Description

Intermediated Framework Loan to Sicredi, Brazil's second-largest credit cooperative, to finance solar energy investments mainly by small and medium-sized enterprises (SMEs) and households.

Additionality and Impact

This operation will finance 100% Climate Action investments in solar photovoltaic schemes across Brazil, providing an intermediated Framework Loan to a large credit cooperative (Financial Intermediary).

This operation will enable investments into renewable energy, leading to carbon emission and air pollution reductions by promoting additional renewable generation capacity. It is therefore strongly aligned with EU priorities in the country (particularly the Green Deal Team Europe Initiative for Brazil and its Sub-Initiative on Sustainable and Smart Cities) as well as with Brazil's Intended Nationally Determined Contribution, while addressing the existing failures of the energy market, namely negative environmental externalities and incomplete markets.

The individual sub-projects are expected to have an excellent economic return. The Financial Intermediary is deemed to possess adequate capabilities to implement the operations in the current challenging operating environment.

The EIB offers financial and non-financial benefits to the Financial Intermediary, including a longer maturity, flexibility to choose at disbursement both the currency (EUR/USD) and interest rate type. By financing only up to 50% of the underlying projects, the EIB's participation will help crowd in private sector capital, helping to diversify the counterpart's funding mix and channelling funds to investments into renewable energy production capacities.

Objectifs

By supporting investments into solar photovoltaic schemes, the project is expected to contribute to the EIB's objectives under the Climate Action and Environmental Facility (CAEF) by promoting climate change mitigation. The operation is well aligned with the United Nations Sustainable Development Goals 7 (Affordable and Clean Energy) and 13 (Climate Action). 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.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

EUR 200 million

Coût total (montant approximatif)

EUR 400 million

Aspects environnementaux

The operation will generate environmental benefits by supporting renewable energy investments into solar photovoltaic schemes that help mitigate climate change.

Passation des marchés

It is expected that the beneficiaries of the schemes under this Framework Loan will be predominantly private entities not operating in the utility sector, not having a status of contracting entity and not being concessionaire. However, it cannot be excluded that some schemes could be classified as public for procurement purposes. Schemes that are subject to local content requirements will not be eligible for the EIB's financing. In any case, the Financial Intermediary will be required to take all the requisite measures to ensure that the procurement procedures are carried out in accordance with the Bank's Guide to Procurement.

Statut

Signé - 29/11/2022