PROJECT

Projects

Summary of Proposed Investment

Project Number

11575

Company Name

CPFL Energia S/A.

Date SPI Disclosed

Sep 30, 2002

Country

Brazil

Industry

Infrastructure

Projected Board Date

Nov 21, 2002

Status

Completed

Sector

Electric Power Other (Including Holding Companies)

Department

Regional Industry INF LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : May 15, 2003
Signed : Jun 25, 2003
Invested : Feb 27, 2004

Project Description

CPFL Energia is a holding company that controls three distribution companies and has majority ownership in several generation projects. CPFL Energia''s distribution companies serve approximately 5 million customers in 515 municipalities. Its generation companies have total nameplate capacity (operating and under construction) in excess of 4,200 MW, of which CPFL''s portion is 2,379 MW. The IFC investment will assist the company in the completion of its corporate restructuring process, implementation of new corporate governance policies, and preparation for an IPO on the Brazilian Novo Mercado and NYSE, expected to take place in 2003.

Development Impacts and IFC''s Role
IFC''s proposed investment will help the company to complete its corporate restructuring and to prepare it for the IPO on the Brazilian Novo Mercado and NYSE. CPFL Energia will be one of the few Brazilian energy companies to list on the NYSE. IFC''s participation would give comfort to domestic and international investors and will allow the company to access cheaper sources of capital on domestic and global capital markets. IFC’s involvement will also help to make this company a highly visible example of the adoption of sustainable business practices in this sector in emerging markets. IFC''s involvement will also ensure the CPFL Energia''s adoption of environmental and social policies that are in line with the World Bank Group policies and global best practices.

Sponsor / Cost / Location

Development Impact