EIB Grants €200 Million to Sicredi for SMEs and Households’ Solar Energy Investments
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- 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.
See related article: EIB and MDBs Team To Accelerate the Circular Economy Transition
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.