São Paulo, Brazil, April 22nd, 2025 – The International Finance Corporation (IFC), a member of the World Bank Group, announced a strategic partnership with Grupo Equatorial to enhance Brazil’s energy access, improve system reliability, and reduce environmental impacts amid rising energy demands in the country.
Brazil faces the challenge of expanding infrastructure to meet demand while reducing greenhouse-gas emissions. The World Bank Group estimates that closing the infrastructure gap and achieving development goals from 2022 to 2030 will require 3.7% of GDP annually. IFC's support of private infrastructure companies through impactful investments is crucial to addressing this gap. The electricity distribution sector is key to ensuring affordable energy access, system reliability, and reducing environmental and disaster impacts.
IFC’s investment consists of a loan package of up to $250 million for Grupo Equatorial, to be used by one or more of its subsidiaries. The first loan was committed on March 28th and consists of a green loan of up to $100 million from IFC’s own account to Equatorial Alagoas Distribuidora de Energia S.A. At least one other loan should be committed by the end of 2025, for a subsidiary to be decided.
“Modernizing and strengthening Brazil’s power distribution system is critical to fostering economic growth and enabling sustainable development,” said Temel Öktem, IFC Regional Industry Manager, Latin America and the Caribbean. “IFC’s partnership with Grupo Equatorial will help increase the sustainability of Brazil’s energy sector and improve the country’s resilience.”
Equatorial Alagoas distributes electricity to 1.4 million customers in 102 cities in the state of Alagoas, one of Brazil’s lowest-income areas in the northeast of the country. This investment will improve service quality and operations, which will help to boost economic inclusion, since at least 50 percent of the beneficiaries of the quality improvements associated with the company’s capital investment are from low income, underserved populations.
Grupo Equatorial is a leader in Brazil’s Transmission and Distribution sector. IFC’s investment will support the group’s programs focusing on energy loss reduction, service quality enhancements, and capacity expansion. It will finance upgrades and expansions of the distribution network, which will reduce losses, enhance system efficiency, and minimize outages from severe weather events. In addition to the investment, IFC will provide capacity building and help improve the environmental, social and governance policies of Equatorial Alagoas to align with IFC’s Performance Standards on Environmental and Social Sustainability, setting a benchmark for the sector.
“This partnership with IFC is an important step in our strategy to modernize and expand our operations, ensuring greater efficiency and reliability in the supply of energy to millions of Brazilians,” said Leonardo Lucas, Vice President of Finance, IR and New Businesses at Grupo Equatorial. “We’ve had the opportunity to collaborate with IFC in the past, through another company in the group, including support for the Luz Para Todos program — and it is a great pleasure to have them back with us. These new investments will not only enable technical improvements to the electricity infrastructure but will also have a significant social impact. We are committed to transforming the electricity sector by aligning innovation and sustainability for a more resilient future,” he added.
In 2024, IFC launched the IFC Future Grids Alliance, an initiative designed to accelerate critical investments in energy networks by promoting knowledge sharing and innovation, in addition to customized, competitive financing solutions. Equatorial Group is joining this initiative, and, along with a select group of global utilities, will help expedite sustainable deployment of essential energy infrastructure in emerging markets.
About Grupo Equatorial
Grupo Equatorial is one of Brazil's largest infrastructure groups, active in distribution, transmission, sanitation and renewable energy generation. Founded in 2004, it operates seven energy distribution companies in the states of Maranhão, Pará, Piauí, Alagoas, Rio Grande do Sul, Amapá and Goiás, serving approximately 14 million customers. With its entry into the wastewater sector, it became the first multi-utility company in the country. With the acquisition of Echoenergia, it expanded its activities in solar and wind energy, consolidating its role in the energy transition. With a focus on innovation and efficiency, Equatorial continues to grow its business and promote sustainable development. For more information, visit: www.equatorialenergia.com.br
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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