CPFL Energia

completed

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 RoleIFC''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.