EIB Provides €300 Million Loan to Banco Santander Brasil for Small-Scale Solar Energy Investments
Brussels – The European Investment Bank (EIB), the largest multilateral public bank in the world, has signed a €300 million loan agreement with Banco Santander (Brasil), the largest foreign bank in Brazil, to promote the use of renewable energy in the country. The loan was signed on July 17, 2023, during the EU-CELAC Summit of Heads of State and Government and the EU-LAC Business Forum, by EIB Vice-President Ricardo Mourinho Félix and Carlos Rey de Vicente, Banco Santander’s Regional Head for South America.
The loan supports the installation of small-scale self-consumption solar photovoltaic plants in Brazil, primarily on rooftops, with a combined capacity of approximately 600 MWp. These solar plants will be installed on homes and small to medium-sized businesses.
The project aligns with the European Union’s Global Gateway investment strategy, which aims to improve global and regional connectivity across various sectors, including digital, climate, transport, health, energy, and education.
The Global Gateway project contributes to climate action by mitigating the effects of climate change. It will assist Brazil in achieving its renewable energy targets for annual electricity generation and its ten-year national energy expansion plan. As a low-carbon power generation project, it will reduce carbon emissions and air pollution. Additionally, the project will enhance energy efficiency by reducing electrical losses within a self-consumption system.
The agreement strengthens the EIB’s role as a global climate bank, with approximately 80% of its total financing in Latin America in 2022 being dedicated to climate action and environmental sustainability. It also supports Banco Santander’s climate strategy, which aims to achieve net-zero emissions by 2050. Banco Santander has demonstrated its commitment to sustainability, facilitating over BRL 32 billion (€6 billion) in sustainable business in Brazil in 2022 alone.
Vice-President Ricardo Mourinho Félix of the EIB expressed his satisfaction with the project, emphasizing its contribution to private sector investments in renewable energy and the reduction of carbon emissions and air pollution. He highlighted the EIB’s long-standing support for climate action in Brazil.
Jutta Urpilainen, the Commissioner for International Partnerships at the European Commission, noted that the project would have a significant positive impact on Brazilian families and small businesses. She highlighted the EU’s commitment, through the EU-Latin America and the Caribbean Global Gateway Investment Agenda, to promote fair green and digital investment and help achieve the Sustainable Development Goals.
Carlos Rey de Vicente, Banco Santander’s Regional Head for South America, emphasized the importance of the partnership in moving toward a green economy in Brazil. He highlighted the country’s vast solar energy potential and the positive impact the project would have in providing access to solar energy for thousands of people and small companies across the nation.
The EIB Global, created in 2022 for activities outside the European Union, plays a crucial role in increasing the impact of international partnerships and development finance. With offices worldwide, it fosters strong partnerships with Team Europe, development finance institutions, and civil society.
This initiative demonstrates the commitment of the EIB Global in Brazil, which has provided over €5.4 billion in financing since 1997, making Brazil the largest beneficiary of EIB financing in Latin America. The EIB Global’s total financing in Latin America, since its inception in 1993, has reached approximately €13 billion, supporting more than 150 projects in 15 countries across the region.
The Global Gateway initiative, spearheaded by the European Union, aims to enhance global and regional connectivity in key sectors. The EIB Global is a vital partner in implementing this initiative, leveraging its 65 years of experience in connectivity-related investments. The EU, EU Member States, and development financing institutions, including the EIB, collaborate with the private sector to achieve the target investment of €100 billion by the end of 2027.
Banco Santander (Brasil), a major presence in retail banking and a member of the Santander Group, has been active in Brazil since 1982. Committed to promoting inclusive and environmentally responsible business, Banco Santander seeks to advance the green economy and make a positive contribution to society.
The collaboration between the EIB and Banco Santander (Brasil) marks a significant step towards a greener future in Brazil, harnessing the potential of solar energy and generating clean power while supporting the nation’s transition to a sustainable energy mix.
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About EIB Global in Brazil: The European Investment Bank (EIB) is the largest multilateral public bank globally. In 2022, it provided approximately €10.8 billion in investments outside the European Union through EIB Global, the arm established for activities beyond Europe. Brazil has been the largest beneficiary of EIB financing in Latin America, with over €5.4 billion committed since the bank’s operations began there in 1997. These investments aim to enhance the quality of life for Brazilians by supporting favorable maturity and interest terms. Brazil represents more than 40% of the EIB’s portfolio in Latin America.
About EIB Global in Latin America: EIB Global facilitates long-term investment with favorable conditions and offers the necessary technical support to ensure that projects deliver positive social, economic, and environmental outcomes. Since its establishment in 1993, the EIB has provided total financing of around €13 billion to support over 150 projects in 15 Latin American countries, promoting sustainable development across the region.
About the Global Gateway initiative: The European Union’s Global Gateway initiative focuses on promoting connectivity and investment in key sectors such as digital, climate, transport, health, energy, and education. The EIB Global plays a pivotal role in this initiative, leveraging its expertise in connectivity-related investments built over 65 years. Working closely with EU institutions, Member States, and development financing institutions, the aim is to support €100 billion in investments by the end of 2027, driving growth and development in Brazil and throughout Latin America.
About the EU-Latin America and the Caribbean Global Gateway Investment Agenda (GGIA): The European Commission coordinates the EU-LAC Global Gateway Investment Agenda, a political commitment to identifying fair green and digital investment opportunities in Latin America and the Caribbean. The initiative aims to leverage the benefits generated by trade and investment agreements to achieve the Sustainable Development Goals. It involves collaboration between the EU, its Member States, development financing institutions, including the European Investment Bank (EIB), export credit agencies, and other public sources of funding, alongside private sector entities.
About Banco Santander (Brasil): Banco Santander (Brasil) (SANB11) commenced operations in Brazil in 1982. Through mergers and acquisitions, it has created competitive wholesale and retail structures by integrating more than 70 banks and companies. Banco Santander is part of the Santander Group, one of the world’s largest banks by market value, with a significant presence in ten key countries in Europe and America. With over 53,000 employees serving 31.7 million active customers, Banco Santander is the only international financial institution with a strong presence in retail banking. In 2022, the bank was recognized as one of the most sustainable companies by ESG’s Guia Exame Melhores, underscoring its commitment to inclusive and environmentally responsible business practices. More information is available at www.santander.com.br.
https://ec.europa.eu/commission/presscorner/detail/en/IP_23_3896