BRAZIL —The European Investment Bank (EIB), through its international financing arm EIB Global, has signed a €150 million loan agreement with Brazilian energy company Neoenergia to modernise the electricity distribution infrastructure operated by Neoenergia Elektro. The investment programme, valued at approximately €342 million, will be implemented between 2027 and 2030 across the Brazilian states of São Paulo and Mato Grosso do Sul. Spain's export credit agency, Cesce, will guarantee the EIB financing.
The programme targets the technical and operational capacity of the distribution network through the refurbishment of electricity lines, upgrades to substations, improvements to control and protection systems, and the deployment of network automation technologies. Measures to reduce technical electricity losses are also included. The investment is expected to improve supply reliability, strengthen infrastructure resilience against extreme weather events and accommodate increasing electricity demand.
Neoenergia Elektro serves more than 3 million customers across 223 municipalities in São Paulo and five municipalities in Mato Grosso do Sul. The planned improvements are intended to expand network capacity and enable additional connections, including those serving low-income households and renewable energy generators. Greater grid flexibility will be particularly relevant as Brazil increases renewable energy deployment and advances electrification across its economy.
The financing addresses a critical infrastructure requirement for Brazil's energy transition. Distribution networks must accommodate increasingly decentralised generation, including renewable energy projects, while maintaining stable electricity supply for residential, commercial and industrial consumers. Modernisation of existing infrastructure can also improve operational efficiency by reducing technical losses and strengthening automated monitoring and control capabilities.
The transaction represents the first EIB-financed operation with Neoenergia supported by a Cesce guarantee for green projects undertaken by Spanish subsidiaries outside Spain. The arrangement also contributes to the European Union's Global Gateway Investment Agenda for Latin America and the Caribbean, which supports sustainable infrastructure development and international investment partnerships. The programme is aligned with Brazil's ten-year energy expansion plan, which prioritises energy efficiency, grid modernisation and renewable energy integration.
For Neoenergia, the long-term financing provides a stable funding source for capital-intensive infrastructure expenditure, potentially reducing refinancing exposure and facilitating additional funding from commercial banks and capital markets. The investment programme also includes measures intended to increase women's participation in the energy sector through technical employment, professional training and leadership opportunities.
Neoenergia is a Brazilian electricity company involved in energy distribution and infrastructure development. Its distribution operations serve millions of customers across several Brazilian states. EIB Global is the international development arm of the European Investment Bank, providing financing for projects outside the European Union, while Cesce supports international business through export credit insurance and financial guarantees. The agreement follows a €300 million green financing arrangement signed by the EIB and Neoenergia in November 2025 for electricity grid modernisation in Bahia.
