The Japanese agency’s first sustainability-linked loan worldwide will enhance the quality and reliability of the energy supply in the state, the largest in the Northeast;

The project will also encourage greater participation by female electrical engineers in the distributor’s operations.

The Japan International Cooperation Agency (JICA) signed a financing agreement with Neoenergia Coelba, an electricity distribution utility in Bahia, in the amount of R$ 764 million. The transaction marks JICA’s first Sustainability-Linked Loan (SLL) worldwide, as well as inaugurating the application of the Sustainable Finance Framework developed for co-financing with MUFG Bank, an unprecedented milestone in the institution’s operations. The funds will be used to modernize the state’s electricity distribution network, with a focus on increasing energy efficiency and improving the quality of supply in one of Brazil’s regions with the greatest potential for socioeconomic growth.

The financing contributes to climate change mitigation and is aligned with the context of the 30th UN Climate Conference (COP30), to be held in Brazil in November 2025, as part of cooperation efforts with the host country. The agreement is expected to further strengthen bilateral relations between Brazil and Japan, built over more than 130 years, and consolidate a global strategic partnership based on historical ties of cooperation.

The project is also aligned with the MIDORI Initiative ( Mission for Inclusive Development through Responsible Investment), launched at COP 30, to promote JICA investment in the area of climate change, such as renewable energy, energy efficiency, the environment, agriculture, biodiversity, water, sanitation, and waste management.

“The formalization of yet another transaction with JICA and MUFG consolidates a long-term strategic partnership and reinforces Neoenergia’s leading role in sustainable financing. Being the first company globally selected by JICA to access financing with sustainability goals demonstrates the consistency of our strategy and our structural commitment to the energy transition, while enabling significant investments in the modernization of Bahia’s electrical infrastructure,” says Eduardo Capelastegui, CEO of Neoenergia.

More than 6.9 million customers—equivalent to approximately 15 million residents—are served by Neoenergia Coelba, a Neoenergia subsidiary, in the state of Bahia.

Beneficiary

Neoenergia Coelba

Country (target region)

Brazil

Loan amount

R$ 764 million

Project name

Clean Energy Distribution Improvement Project in the Northeast

Project objective

The project aims to finance the capital investments needed to strengthen the electricity distribution grid, while incorporating interest rate incentives linked to Neoenergia Coelba’s progress in digitizing its system and increasing the participation of female electrical engineers in its operations.

Through these measures, the initiative seeks to reduce technical losses, increase energy efficiency, and improve the stability of energy supply in a region where renewable sources play a key role. In this way, the project simultaneously contributes to climate change mitigation and the promotion of gender equality in the electricity sector.

Project Summary

The funds from the JICA loan will be used to support the reinforcement of Neoenergia Coelba’s distribution network and investments in the state of Bahia during the years 2026 and 2027.

Contribution to the SDGs

SDG 5 – Gender Equality

SDG 7 – Affordable and Clean Energy

SDG 10 – Reduced Inequalities

SDG 13 – Climate Action

SDG 17 – Partnerships for the Goals

The project marks the first application of the Sustainable Finance Framework introduced in July 2025 for co-financing between MUFG Bank and JICA. The framework received an opinion from an independent external organization, confirming its compliance with internationally recognized sustainable finance principles, including the Green Loan Principles and the Social Loan Principles established by the Loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA).