Equatorial Group

active

The proposed IFC investment consists of loans of up to, in aggregate, US$325 million (i) an IFC A/B loan to Equatorial Alagoas Distribuidora de Energia S.A. (“Alagoas”, “EQTL AL” or the “Company”), a subsidiary of Equatorial S.A. (“Equatorial” or the “Group”), of an amount of US$100 million for IFC’s own account and up to $75 million for the account of Participants; and (ii) an IFC A Loan to Equatorial Goias Distribuidora de Energia S.A. (“Goias”, “EQTL GO” or the “Affiliate”), another subsidiary of Equatorial, of an amount of up to US$150 million for IFC’s own account (the “Project”). The proceeds of the senior Green Loan to Alagoas are for the financing of a portion of the Company’s capex program for 2023 to 2026, including its programs for loss reduction, service quality improvement, and capacity expansion (excluding any new transmission or distribution lines) (the “Alagoas Loan”). The proceeds of the senior Green Loan to Goias are aligned with those of the Alagoas Loan, for the financing of a portion of the Affiliate’s capex program for 2025 to 2026. These include acquiring new transformers and measuring equipment and replacing outdated substation equipment, improving automation and related civil works within the existing footprints, , and installing new power grid protection and control systems.