Neoenergia Coelba, an electricity distribution company owned by Neoenergia, which is a subsidiary of the Iberdrola Group in Brazil, has secured financing worth 780 million Brazilian reais (approximately €130 million) from the Japan International Cooperation Agency (JICA).

JICA operates under Japan’s Ministry of Foreign Affairs and supports development and sustainability projects around the world.The funding will be used to modernise the electricity distribution network in the state of Bahia, the largest state in north-eastern Brazil.

The investment is intended to improve the efficiency of the electricity system while enhancing the quality, reliability, and resilience of power supply for consumers across the region. The project forms part of a wider infrastructure investment programme through which around €4.5 billion is planned to be invested in Bahia’s electricity network by 2030.

The agreement is considered a significant milestone in sustainable finance. It is the first loan granted by JICA anywhere in the world to be linked to sustainability performance indicators, meaning that the financing is tied to specific environmental and sustainability-related objectives.

The transaction also marks the launch of JICA’s new sustainable finance framework, which was developed in collaboration with MUFG Bank to support investments that contribute to environmental and climate goals.

The project is aligned with broader international efforts to accelerate the energy transition and forms part of the cooperation agenda surrounding COP30, the United Nations climate conference scheduled to be held in Brazil in November 2025.

It also supports JICA’s MIDORI Initiative, a programme designed to encourage responsible investment in environmentally sustainable sectors outside Japan, with a particular emphasis on Latin America.For Iberdrola and its Brazilian subsidiary Neoenergia, the financing will support the continued expansion and modernisation of electricity networks, helping to create a more efficient and reliable power system.

Stronger distribution infrastructure will be essential for meeting growing electricity demand, supporting increased electrification, and enabling the integration of cleaner energy sources as Brazil advances its energy transition goals.

The agreement further reinforces Iberdrola’s position as one of the leading global energy companies attracting sustainable financing to support decarbonisation and the development of modern energy infrastructure. Through investments in smarter and more resilient networks, the company aims to facilitate the transition to a low-carbon economy while improving service quality for customers.

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