The Japan International Cooperation Agency (JICA) has granted Iberdrola financing of 764 million reais (about USD 130 million) to modernize the electricity distribution network in the State of Bahia, Brazil.
This is the first JICA loan worldwide linked to sustainability indicators, in the form of a 'sustainability-linked loan' (SLL), and it also represents the launch of the new sustainable financing scheme designed by this organization in collaboration with MUFG Bank.
The financing is part of the commitments made at COP30 and is aligned with Iberdrola's investment plan of nearly 25 billion reais (almost 4.5 billion euros) in electrical infrastructure in the state of Bahia until 2030.
The plan, carried out through its subsidiary Neoenergia Coelba, includes 54 new substations , more than 2,000 kilometers of high-voltage lines and 42,000 kilometers of medium-voltage networks .
With this, the state of Bahia will receive 50% of the investments in electricity distribution networks planned for the next five years by Iberdrola's Brazilian subsidiary, Neoenergia, which will reach 50 billion reais (9 billion euros) after the recent renewal of its distribution concessions in the country.
How is Iberdrola positioned in Brazil?
Iberdrola has been present in Brazil for almost three decades and serves more than 40 million people through Neoenergia . The Group's Brazilian subsidiary, operating in 18 states and the Federal District, is the leading electricity distribution group and the company that invests the most in electrical infrastructure in the country. "Brazil is a strategic market for Iberdrola," stated Galán. Iberdrola's presence in Brazil began in 1997 with the integration of the distribution companies Coelba (in Bahia) and Cosern (in Rio Grande do Norte). Since then, the company has invested more than 120 billion reais (20 billion euros) in the country .