Neoenergia announces financing agreement with JICA and MUFG Bank for expansion of the power distribution network in Pernambuco


Masayuki Eguchi, chief representative of JICA Brazil; Saulo Cabral, CEO of 

Neoenergia Pernambuco; and Akihiko Kisaka, president of Banco MUFG Brasil - Photo: Leo Caldas  









Neoenergia, the Japan International Cooperation Agency (JICA) and Banco MUFG (Mitsubishi UFJ Financial Group) have just signed a financing agreement totaling about R$ 703.4 million to expand the distribution of energy in the concession area of Neoenergia Pernambuco. The funds will be allocated in terms of up to 10 years for the modernization of the network and the improvement of the quality of supply in the state, where almost four million customers are served.

"For us at Neoenergia, the consumer comes first. Pernambuco is one of our main dealerships. We believe that the improvement of our services is a safe way for the use of energy to have more quality and efficiency. Therefore, we have a clear strategy for sustainable growth with a diversified and integrated business model focused on the customer," says Eduardo Capelastegui, CEO of Neoenergia.

To celebrate the signing of the agreement, representatives of the company and the institutions met on Thursday (11/5), at the headquarters of the concessionaire, in Recife (PE) and were received by the CEO of Neoenergia Pernambuco, Saulo Cabral. " The funds will continue the actions of expansion, modernization and digitalization of the distribution network throughout the state. Currently, the concession area has achieved the best quality indexes in history. These investments contribute to the consolidation of this work," he said.

Masayuki Eguchi, Chief Representative of JICA Brazil emphasizes the relevance of the project. "Energy is the basis of economic and social development and the improvement of people's lives   By strengthening the power transmission and distribution networks in this project implemented by Neoenergia Pernambuco, we want all citizens of this region to have access to continuous energy, stable and sustainable. For us, it is a great pleasure to implement this project of great impact for society with important partners such as Neoenergia."

Leonardo Gadelha, CFO of Neoenergia highlights the importance of the operation for the company." The credit lines have competitive costs and terms, allowing Neoenergia to maintain the diversification of financing sources to support the development of its business plan. In addition, the partnership is also aligned with our purpose of socio-economic promotion also defended by the funding agents," he said.

JICA's resources will be made available through the Private Sector Investment Financing Program (PSIF), and Banco MUFG Brasil will co-finance the project with a contribution of R$ 238.5 million. The amounts will be allocated to projects to expand and strengthen the energy distribution network, extending coverage to remote areas, and improving the efficiency and quality of energy supply in Pernambuco and the well-being of the population. Following ESG principles, the projects will contribute to four of the UN's Sustainable Development Goals: #7 (clean and affordable energy), #10 (reducing inequalities), #13 (climate action) and #17 (partnerships to achieve the goals).

The president of Banco MUFG Brasil, Akihiko Kisaka, spoke about the partnership between the Bank, JICA and Neoenergia: "We are proud to lead, with JICA, another Neoenergia project that will benefit millions of people. Again we are together in an important initiative for the improvement of Brazil's energy infrastructure. The Neoenergia Pernambuco project meets four of the UN Sustainable Development Goals: #7 (clean and affordable energy), #10 (reduction of inequalities), #13 (climate action) and #17 (partnerships to achieve the goals), reinforcing our ESG business front and MUFG's commitment to promoting sustainable and shared growth for a better world."

This is the second financing operation between Neoenergia, JICA and Banco MUFG for energy infrastructure projects in Brazil. The first operation, in the total amount of R$ 768.3 million, was carried out in May 2021, aimed at expanding the distribution network of Neoenergia Coelba, a concessionaire in Bahia that serves about 6.5 million customers.