48848 - Equatorial Alagoas

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Summary of Investment Information

Project Number

48848

Company Name

Equatorial Alagoas Distribuidora de Energia S.A

Date SPI Disclosed

Jun 7, 2024

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Oct 10, 2024

Environmental Category

B - Limited

Status

Active

Last Updated Date

Dec 18, 2025

Department

CN6L2 - Regional Industry INF LAC & EUR/INR LAC2 S Cone Andean & Brazil

Industry

Infrastructure

Previous Events

Approved : Oct 10, 2024
Signed : Mar 28, 2025
Invested : May 29, 2025

Sector

Distribution Business

Additional Project Attributes

Public-Private Partnerships

Project Description

The proposed IFC investment consists of loans of up to, in aggregate, US$325 million consisting of: (i) an IFC A/B loan to Equatorial Alagoas Distribuidora de Energia S.A. ( “EQTL AL” or the “Company”), a subsidiary of Equatorial S.A. (“Equatorial” or the “Group”), of an amount of US$100 million for IFC’s own account and up to $75 million for the account of Participants; and (ii) an IFC A Loan to Equatorial Goias Distribuidora de Energia S.A. ( “EQTL GO” or the “Affiliate”), another subsidiary of Equatorial, of an amount of up to US$150 million for IFC’s own account (the “Project”).

The proceeds of the senior Green Loan to EQTL AL are for the financing of a portion of the Company’s capex program for 2023 to 2026, including its programs for loss reduction, service quality improvement, and capacity expansion (excluding any new transmission or distribution lines) (the “Alagoas Loan”).

The proceeds of the senior Green Loan to EQTL Goias are aligned with those of the Alagoas Loan, for the financing of a portion of the Affiliate’s capex program for 2025 to 2026, such as acquiring and installing protection and control systems and substation and measuring equipment within the existing footprints.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	250.0
Equity

Development Impact

The most significant project outcomes are the increased quality and reliability of electricity supply in the states of Goias and Alagoas, especially for the underserved populations, through reduced losses. The Project also has the potential for greater financial integration by supporting the use of green financing instruments in the market, helping to strengthen the availability of diverse sources of financing for players in the sector.

IFC is providing EQTL Alagoas and EQTL Goias with 8-year and 10-year tenor funding to support both companies in the diversification of their funding sources. Domestic commercial banks are currently unable to offer similar long-term financing and access to international financing in Brazil is limited. IFC will also play an active and direct role in mobilizing additional financing. IFC will bring non-financial additionality by supporting the companies’ environmental and social management policies in line with IFC Performance Standards, as well as facilitating the updating of their Green Finance Framework.

Indicator	Metrics	Comments
Trasmission And Distribution Losses	%
Female Direct Employment (#) Operations And Maintenance	individuals

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).

Key risks are: (i) the Company's E&S management system and organizational capacity to ensure adequate screening, assessment and management of E&S risks and impacts in line with IFC PSs, WBG EHS Guidelines and local regulations, (ii) fair and safe working conditions (including GBVH) and management of OHS aspects (with focus on electrical safety); (iii) contractor E&S management; (iv) emergency preparedness and response for employees, contractors and communities; and (v) stakeholder engagement and grievances redress.

Contacts

For Inquiries About the Project, Contact

Equatorial S.A.
Clara Valadares Domingues / Albano da Silva Dias Gonçalves
Área Executiva de Captação de Recursos / Gerência Corporativa de Estratégia Financeira
+55 (71) 99967-2494 / +55 (31) 98337-3316
captacao@equatorialenergia.com.br
BL A - Setor Comercial Sul Q. 9, Torre A, Edifício Parque Cidade Corporate - Asa Sul, Brasília - DF, 70297-400
https://www.equatorialenergia.com.br/

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

Contact Person: Clara Valadares Domingues

Company Name: Equatorial S.A.

Address: BL A - Setor Comercial Sul Q. 9, Torre A, Edifício Parque Cidade Corporate - Asa Sul, Brasília - DF, 70297-400

Email: clara.domingues@equatorialenergia.com.br / ld.projectfinance@equatorialenergia.com.br

Phone: (61) 3426-1000 / (31) 98337-3316

Facsimile: N/A

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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