Neoenergia, Iberdrola's Brazilian subsidiary, signs its first bilateral green loan with Japanese bank MUFG

Iberdrola, through its subsidiary in Brazil, Neoenergia, and Mitsubishi UFJ Financial Group (MUFG) have signed a BRL 150 million (around EUR 28 million) financing agreement to improve the distribution network in Neoenergia Brasilia's concession area, which serves around 1.1 million customers in the Federal District. This is the first bilateral green loan between the two organisations and has a duration of two and a half years. The resources will be used for projects aligned with ESG (environmental, social and governance) principles. 

Neoenergia Brasilia's concession area amounts to 5,780 square kilometres and covers the 33 administrative regions that make up the Federal District. MUFG has been increasing the volume of sustainable financing in Latin America, and the partnership with clients such as Neoenergia is key to this growth. 

This is the third financing signed between Neoenergia and MUFG, following two agreements in partnership with the Japan International Cooperation Agency. The first operation, for 768.3 million reais (about 143 million euros), was carried out in May 2021, with the aim of expanding the distribution network of Neoenergia Coelba, a concessionaire in the state of Bahia that serves about 6.5 million consumers. The second deal was signed this year, for about 703.4 million reais (131 million euros), to expand energy distribution in Neoenergia Pernambuco's concession area, which serves about four million customers.  

"We are committed to maintaining service excellence to provide sustainable, safe and reliable energy to our customers. The investments will be allocated to projects to expand and strengthen the distribution network, improving the efficiency and quality of energy supply and the well-being of the population of the Federal District," said Frederico Candian, president director of Neoenergia Brasilia. 

"This operation is very important for us. We close MUFG's first bilateral green loan with Neoenergia, deepening the relationship with a relevant client and expanding our portfolio of sustainable businesses. We worked together with Neoenergia to provide the best financial solution for their business needs and the best timing for the transaction. We are pleased with the result," says Juliane Yung, Head of Corporate & Investment Banking for Latin America at MUFG.

Americas Coordinator: José Antonio Sierra.