Highlights
- The project will contribute 100% to Climate Action (mitigation)
- Solar PV plants will be installed to individual homes, SMEs and potentially rural schools
The European Investment Bank (EIB), the world's largest multilateral public bank, and Sicredi, a cooperative financial institution operating in all regions of Brazil, signed an agreement aimed at fostering the use of renewable energy in Brazil. Ricardo Mourinho Félix, Vice-President of the EIB and César Bochi, CEO of Banco Cooperativo Sicredi, signed a 200 million loan in Brasilia, which will be used by Sicredi to finance the installation of photovoltaic panels on homes, small and medium-sized businesses and rural properties.
The project will contribute 100% to Climate Action (mitigation) and will support Brazil's targets for increasing the share of renewable energy sources in its annual electricity generation, contributing to the achievement of the ten-year national energy expansion plan. By supporting this low-size market segment the operation reduces electrical losses and optimises the distribution grid usage.
"I'm very glad to announce a project that enables private sector's investments into renewable energy, reduces carbon emission and air pollution, and supports additional renewable generation capacity in Brazil. The EIB is a natural partner for Brazil with its ambitious climate agenda, I am proud to see cooperation between Europe and Brazil growing through projects like this," said EIB Vice-President Ricardo Mourinho Félix.
Ambassador and Head of the Delegation of the European Union for Brazil Ignacio Ybáňez said: "The European Investment Bank signing a loan with Banco Sicredi further highlights the Team Europe approach for a green and resilient future in Brazil underpinning the EU Global Gateway strategy. It also proves the commitment of the EU to sustainable growth and to strengthening the resilience of Brazilians, and it is a clear demonstration of the Team Europe spirit to work for the benefit of our Brazilian partners."
"We have recently signed several agreements to raise funds abroad in order to promote investments in projects that support the reduction of climate impacts, while generating financial savings for our members. The European Investment Bank is settling in the country and offers a very important opportunity for us to expand this work and we hope this will be the first of many joint actions in support of the environmental, social and governance agenda (ESG)," said César Bochi, Sicredi CEO.
Sicredi is a cooperative financial institution with more than 6.5 million members and 2,500 branches in 1,800 municipalities across all regions of Brazil. In over 200 cities, it is the only financial institution physically present. Currently, the institution holds a credit portfolio of about 1.1 billion.
Background information
About the EIB:
The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms competitive interest rates with loan durations aligned with projects. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.
EIB Global is the EIB Group's specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
https://www.linkedin.com/company/eib-global/
About EIB Global in Brazil:
The EIB is the largest multilateral public bank in the world and financed around 10.8 billion in investments outside of the European Union in 2022 via EIB Global, the arm of the EIB created in 2022 for activities outside the European Union. Brazil is the biggest beneficiary of EIB financing in Latin America. Since the EU bank started working there in 1997, it has provided over 5.4 billion to finance investments with favourable conditions in terms of both maturity and interest rates with the aim of improving the quality of life of Brazilians. Brazil represents around 40% of the EIB's portfolio in Latin America.
About EIB Global in Latin America:
EIB Global has been provided economic support for projects in Latin America since 2022, facilitating long-term investment with favourable conditions and providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of around 13 billion to support more than 150 projects in 15 countries in the region.
About the Global Gateway initiative:
EIB Global is a key partner in the implementation of the European Union's Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank's 65 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of 100 billion, around one-third of the overall envelope of the initiative, by the end of 2027, including in Brazil and Latin America.
About Sicredi:
Sicredi is a cooperative financial institution committed to the growth of its members and the development of the regions in which it operates. Its management model values the participation of its more than 6.5 million members, who are the owners of the business. With more than 2,500 branches, Sicredi is physically present in all Brazilian states and the Federal District, providing a full range of financial and nonfinancial solutions.
