São Paulo, Brazil, July 23, 2013
- IFC, a member of the World Bank Group, announces a BRL 150 million
(equivalent to approximately $68 million) equity investment in CPFL Renováveis,
the leading Brazilian renewable energy generation company, as part of its
Initial Public Offering (IPO). Proceeds from the primary offer of shares
will be used to fund the development and construction of renewable energy
projects and for potential acquisitions of projects generating electricity
from alternative sources, such as wind, small hydros and biomass.
A sound energy sector is critical to
Brazil’s sustainable economic growth. Investments in renewable energy
are a key development priority for IFC, as they help diversify Brazil’s
energy matrix, create jobs, and contribute to the economic development
specially in the Northeast region. IFC’s investment in CPFL Renováveis
will enhance Brazil’s climate change resilience while helping to catalyze
other private sector investments in frontier regions, which are another
strategic priority for IFC in Brazil.
“Brazil has a large, untapped potential
of alternative sources of renewable energy which can help meet rising energy
needs while reducing reliance on fossil fuel based sources and contributing
to a low carbon future,” said Loy Pires, Senior Country Manager for Brazil.
“IFC is pleased to support CPFL Renováveis in this critical stage in its
growth and at a time when market conditions for raising capital are challenging”,
IFC’s strategy in Brazil is focused
on improving the country’s competitiveness, supporting job creation, infrastructure
development and access to financial services for underserved sectors. IFC’s
environmental and social standards aim to support sustainable development
in various industries in Brazil. IFC’s new investments in the last 12
months in Brazil, including syndications, amount to $2.0 billion, making
Brazil the biggest investment destination for IFC for the second year running.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.