On March 21, 2025, New Development Bank (NDB) and Companhia Paulista de Força e Luz (CPFL Paulista) signed a Loan Agreement for the Electricity Distribution Infrastructure Modernization Project to be implemented in the state of São Paulo, Brazil.
The Loan Agreement amounting to RMB 1,425 million was signed at the NDB Headquarters in Shanghai, China by H.E. Mrs. Dilma Rousseff, NDB President, Mr. Vladimir Kazbekov, NDB Vice-President and Chief Operating Officer, Mr. Gustavo Estrella, Chief Executive Officer at CPFL Energia, Ms. Wang Kedi, Chief Financial and Investor Relations Officer at CPFL Energia, Mr. Tiago da Costa Parreira, Corporate Finance Director (CPFL Paulista) and Mr. Flávio de Paula, Capital Market Manager (CPFL Paulista).
The Project represents growing collaboration between NDB’s member countries, and this Loan demonstrates NDB’s commitment to expanding non-sovereign and local currency operations as well as increasing cross border use of its member countries’ currencies, as enshrined in NDB’s General Strategy.
The implementation of the Project will help CPFL Paulista to expand and upgrade the power distribution infrastructure, achieve efficiency gains and provide access to electricity to new households and thereby contribute to the goal of providing universal access to electricity in Brazil.
The Project will promote economic and social development through new grid connections. It is expected that the Project will provide electricity to over 370,000 future homes and business in the State of São Paulo in the coming years. Moreover, by reducing technical losses in the electricity distribution grid, the Project will improve energy efficiency and lead to economic savings for the end-users of energy.
The Project will contribute primarily towards UN Sustainable Development Goal (SDG) 7 – Ensure access to affordable, reliable, sustainable and modern energy for all.
“This project strengthens Brazil’s energy infrastructure and benefits millions of Brazilians. Supporting initiatives like this is at the core of our mission, as reliable energy is essential for both economic and social development. This investment will help meet the growing electricity demand driven by urban expansion, reduce grid losses, and contribute to lower emissions,” said Mrs. Dilma Rousseff, NDB President.
“CPFL has become the first Chinese-funded company in Brazil to receive credit support from the New Development Bank. This project will support the upgrading and transformation of the power distribution system in the concession area, serve the local economic and social development and improve people’s livelihood. Looking forward to the future, we hope to strengthen exchange and cooperation with the New Development Bank at all levels through multiple channels and in various forms, to continue to explore bank-enterprise cooperation opportunities,” said Mr. Yu Lei, President of State Grid International Development Limited (SGID).
“This financing marks CPFL’s first RMB transaction. This relationship with the Bank has been developed over time, with the aim of diversifying funding sources and strengthening the company’s presence in the global market. This is expected to be the first of many transactions, considering that the CPFL Group has a robust investment plan for the next five years, estimated at approximately BRL 30 billion,” said Mr. Gustavo Estrella, Chief Executive Officer at CPFL Energia.
Background information
New Development Bank
NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.
For more information on NDB, please visit www.ndb.int
Companhia Paulista de Força e Luz
For more information on Companhia Paulista de Força e Luz, please visit www.grupocpfl.com.br/unidades-de-negocios/cpfl-paulista