en.Wedoany.com Reported - Brazilian power distribution company Neoenergia Coelba has obtained BRL 780 million (approximately EUR 130 million) in financing from the Japan International Cooperation Agency (JICA).
The company is part of Neoenergia, the Brazilian subsidiary of the Iberdrola Group. JICA, an agency under Japan's Ministry of Foreign Affairs, primarily supports development and sustainable projects globally. The funds will be used to modernize the power distribution network in Bahia, the largest state in northeastern Brazil. The investment aims to enhance power system efficiency and improve the quality, reliability, and resilience of electricity supply for local users. This funding is part of a broader infrastructure investment plan, which intends to invest approximately EUR 4.5 billion in Bahia's power grid by 2030.
A distinctive feature of this loan is that it is the first financing globally issued by JICA linked to sustainability performance indicators, meaning the loan terms are tied to specific environmental and sustainable development targets. The transaction also launched JICA's new sustainable finance framework, developed in collaboration with MUFG Bank, designed to support investments that promote environmental and climate goals.
The project's advancement aligns with international efforts to accelerate the energy transition and forms part of the cooperation agenda surrounding the 30th United Nations Climate Change Conference (COP30), scheduled for November 2025 in Brazil. The project also aligns with JICA's MIDORI Initiative (meaning "green" in Japanese), which focuses particularly on Latin America and encourages responsible investment in environmental sustainability outside Japan. For Iberdrola and Neoenergia, this financing will support the continued expansion and modernization of Bahia's power grid, contributing to a more efficient and reliable electricity system.
As Brazil advances its energy transition, upgrading power distribution infrastructure is crucial to meeting growing electricity demand, supporting higher electrification rates, and integrating cleaner energy sources. This agreement reinforces Iberdrola's ability to attract sustainable financing to support decarbonization and the development of modern energy infrastructure. By investing in smarter, more resilient grids, the company aims to promote the transition to a low-carbon economy while improving customer service.
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