The amount of financing is approximately 28 million euros
This is the third financing signed between Neoenergia and MUFG, after two agreements in partnership with the Japan International Cooperation Agency.
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The amount of financing, 150 million reais (about 28 million euros), will be used in projects aligned with environmental, social and governance parameters to improve energy supply
Iberdrola, through its subsidiary in Brazil, Neoenergia, and Mitsubishi UFJ Financial Group (MUFG) have signed a financing agreement of 150 million Brazilian reais (about 28 million euros) to improve the distribution network in the concession area of Neoenergia Brasilia, which serves around 1,1 million clients in the Federal District. This is the first bilateral green loan between the two organizations and has a duration of two and a half years. The resources will be allocated to projects aligned with ESG (environmental, social and governance) principles.
Neoenergia Brasilia's concession area amounts to 5.780 square kilometers 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 alliance with clients such as Neoenergia is key to this growth.
This is the third financing signed between Neoenergia and MUFG, after two agreements in alliance 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 objective of expanding the distribution network of Neoenergia Coelba, a concessionaire in the state of Bahia that serves some 6,5 million consumers. The second operation was signed this year, for about 703,4 million reais (131 million euros), to expand energy distribution in the Neoenergia Pernambuco concession area, which serves around 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 reinforce the distribution network, improving the efficiency and quality of the energy supply and the well-being of the population of the Federal District," he assured. Frederico Candian, president director of Neoenergia Brasilia.
“This operation is very important for us. We closed MUFG's first bilateral green loan with Neoenergia, deepening the relationship with a relevant client and expanding our sustainable business portfolio. We work together with Neoenergia to provide the best financial solution for your business needs and the best time to carry out the operation. “We are happy with the result obtained,” he says. Juliane Yung, Head of Corporate & Investment Banking at MUFG for Latin America.
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