By Brazil Stock Guide – Banco Bradesco SA (BBD, BBDC4.SA) and power utility Neoenergia SA (NEOE3.SA) completed the first green bond issuances under Brazil’s federal Eco Invest program, raising a combined R$1 billion in transactions finalized on Friday (12). The deals also mark the first use of the instrument within the country’s power sector.
The funds were split between distributors Neoenergia Coelba, operating in Bahia, and Neoenergia Elektro, which serves parts of São Paulo and Mato Grosso do Sul. The bonds have a 10-year maturity, with semiannual interest payments.
The proceeds will be allocated to projects aimed at modernizing electricity infrastructure, including the deployment of smart grids, the undergrounding of lines exposed to climate-related risks, and upgrades to substations, transmission lines and distribution networks, Neoenergia said. The company added that the investments are expected to boost system efficiency, cut technical losses and help reduce greenhouse gas emissions, in line with Eco Invest rules and international green bond standards.
Bradesco BBI acted as sole coordinator and ESG advisor for the transaction, arranging an independent opinion from consultancy ERM to ensure compliance with requirements that funds be directed to projects with measurable environmental benefits.
“This transaction reinforces our ability to structure innovative financial solutions that accelerate Brazil’s energy transition,” Fabiana Costa, head of sustainability at Bradesco, said in a statement.
Caio Andrade Cesar, who oversees ESG at the bank, said aligning Neoenergia’s funding with Eco Invest delivered financial benefits to the company’s funding strategy while strengthening Bradesco’s commitment to channel capital toward climate-transition projects with positive social and environmental impacts.
For Neoenergia Chief Executive Officer Eduardo Capelastegui, the fundraising reflects market recognition of the company’s investment plan. He said the deal underscores the strength of Neoenergia’s strategy focused on modernization, digitalization and grid resilience.
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