EIB and Neoenergia sign €150 million green loan, guaranteed by Cesce, to modernise electricity networks in Brazil

The European Investment Bank (EIB), through EIB Global, and Neoenergia have signed a €150 million financing agreement to upgrade and modernise the electricity distribution network operated by Neoenergia Elektro in the Brazilian states of São Paulo and Mato Grosso do Sul. The loan will support an investment programme with a total cost of around €342 million, to be implemented between 2027 and 2030. The EIB loan is guaranteed by the Spanish export credit agency, Cesce. This is the first EIB-financed operation with Neoenergia backed by Cesce’s guarantee to support green projects led by Spanish subsidiaries outside Spain. 

The programme will finance the refurbishment and modernisation of distribution lines, substations, control and protection systems, network automation and measures to reduce technical losses. These investments will strengthen the reliability and resilience of the network, expand and modernise its capacity and facilitate connections for new users, including low-income households and renewable energy generators.

“Modern and resilient electricity networks are essential for the green transition and for ensuring reliable access to energy. This financing will help improve the quality of electricity supply for communities and businesses in São Paulo and Mato Grosso do Sul, while enabling renewable energy connections and supporting Brazil’s long term climate objectives. It also reflects the European Union’s Global Gateway commitment to sustainable infrastructure and strong partnerships in Latin America,” said EIB Vice President Ioannis Tsakiris.

“We are celebrating a crucial step in our record investment plan in Neoenergia Elektro by accelerating the modernisation and enhancement of the distribution network. As the electrification of the economy requires modern, digital and resilient electricity networks, this financing reinforces Neoenergia’s commitment to enhance the grid for new energy demands while keeping customers at the heart of our operations. Our priority is to provide an increasingly reliable, efficient and high-quality service”, said Eduardo Capelastegui, CEO of Neoenergia.

Pablo de Ramón-Laca, CEO of Cesce, Spain’s Export Credit Agency, said “Cesce is proud to support the investment projects of Neoenergia in Brazil, which demonstrate the leadership of our companies.This project evidences how long-term partnerships with institutions like the European Investment Bank can channel sustainable investment into projects that benefit local communities, strengthen economic growth, and advance renewable energy for the future.”

“This investment is a strong example of how the European Union’s Global Gateway strategy is turning our shared climate ambitions with Brazil into concrete action. By modernising electricity networks in São Paulo and Mato Grosso do Sul, the project will support a more reliable, resilient and inclusive energy system, facilitate the integration of renewable energy and deliver tangible benefits for people and businesses,” said Francisco André, European Union Ambassador to Brazil.

Neoenergia Elektro serves more than 3 million customers across  223 municipalities in São Paulo and 5 municipalities in Mato Grosso do Sul. The company’s network investments are designed to improve service quality, expand network automation and make electricity distribution more efficient and resilient to extreme weather events.

The operation will contribute to Brazil’s ten-year energy expansion plan, which prioritises energy efficiency, grid modernisation and the integration of renewable energy. By increasing network flexibility and reducing losses, the programme will help accommodate further renewable generation and support a more reliable, efficient and inclusive electricity system.

The project is fully dedicated to climate action and supports the European Union’s Global Gateway Investment Agenda for Latin America and the Caribbean. It will promote climate aligned infrastructure, contribute to sustainable and inclusive growth and strengthen the strategic partnership between the European Union and Brazil.

EIB financing provides long term and stable funding for capital intensive network investments. It will help Neoenergia Elektro implement a broader modernisation programme, reduce refinancing risk and mobilise complementary financing from commercial banks and capital markets. The investment programme is expected to increase women’s participation across the energy sector, including in technical roles, professional training and leadership.

This is not the first financing agreement between the EIB and Neoenergia. In November 2025, during COP30, the parties signed a €300 million green financing agreement to modernise Bahia’s electricity grid. Neoenergia Coelba, the state’s electricity distributor, serves more than 6 million customers across 415 municipalities in Bahia. That financing also supported the expansion of the electricity grid, the construction of new connections and investment in automation equipment. Provided on competitive commercial terms, the financing followed a rigorous technical and environmental due diligence process. It represented a strategic opportunity available only to a select group of Brazilian companies meeting the highest international standards.

Background information

EIB Group   

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees, securitisation and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. 
With the support of all 27 EU governments, the EIF has joined forces with institutional investors in a pan-European alliance to mobilise up to €80 billion for investment into innovative companies scaling up to become global leaders. The joint effort will expand the size and scope of the highly successful European Tech Champions Initiative, which has helped create 15 European mega-funds and scale 47 companies, including 15 unicorns, since being established three years ago. 
Photos of the EIB Group's representatives and headquarters, logo files and video B-roll for media use are available here.  

EIB Global

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

EIB Global in Brazil 

Brazil is the biggest beneficiary of EIB financing in Latin America. Since the EIB started working in Brazil in 1997, it has provided over €6.44 billion to finance investments in the country which represents around 35% of the EIB’s portfolio in Latin America. EIB financing in Brazil supports the country’s efforts towards the Sustainable Development Goals and climate neutrality, with a focus on climate action, renewable energy, sustainable urban development, gender inclusion, and local private sector development.

About Neoenergia

Part of the Spanish Iberdrola Group, Neoenergia has been operating in Brazil since 1997 and is currently the country’s leading electricity company in number of customers. With presence in 18 states and the Federal District, its businesses emcompass generation, transmission, distribution and energy trading. Its five distribution companies, Neoenergia Coelba (Bahia), Neoenergia Pernambuco (Pernambuco), Neoenergia Cosern (Rio Grande do Norte), Neoenergia Elektro (São Paulo and Mato Grosso do Sul) and Neoenergia Brasília (Federal District), serve approximately 17 million customers, equivalent to a population of nearly 40 million people. Neoenergia has 3.9 GW of installed generation capacity, 86% of which comes from renewable sources, and operates more than 8,000 kilometres of transmission lines. Through the Neoenergia Institute, the company supports social and environmental initiatives that improve the quality of life of communities in the areas where it operates, particularly vulnerable groups, while promoting sustainable development.

Cesce

Cesce is the Spanish export credit agency. Through a wide range of insurance and guarantees, it supports Spanish companies in making their international activity safer and more competitive.