Iberdrola secures €130 million in financing from the Japan International Cooperation Agency to modernise Brazil’s electricity networks

Neoenergia Coelba, a distribution company owned by Neoenergia, subsidiary of the Iberdrola Group in Brazil has signed a financing agreement worth 780 million Brazilian reais (approximately €130 million) with the Japan International Cooperation Agency (JICA), an agency operating under Japan’s Ministry of Foreign Affairs.

The financing will support the modernisation of the electricity distribution network in the state of Bahia, the largest in north-eastern Brazil. The investment is aimed at improving energy efficiency while enhancing the quality and reliability of electricity supply. The project forms part of a broader investment plan under which around €4.5 billion will be invested in Bahia’s electricity infrastructure by 2030.

The agreement represents a landmark transaction in sustainable finance, as it is the first JICA loan worldwide to be linked to sustainability performance indicators. It also marks the launch of the sustainable finance framework developed by the Japanese agency in partnership with MUFG Bank, further underscoring Iberdrola’s position as a global leader in mobilising capital to accelerate the energy transition.

The project is part of the international cooperation agenda surrounding COP30, which will take place in Brazil in November 2025, and is aligned with JICA’s MIDORI Initiative, which promotes responsible investment in green sectors outside Japan, with a particular focus on Latin America.

For Iberdrola, the financing will help advance the development of stronger, more efficient electricity networks capable of supporting growing electrification.