FinDev Canada provides a USD 30 million loan to Equatorial Maranhão Distribuidora de Energia S.A. and mobilizes private capital to expand energy access in Brazil

Source: Getty Images

Montreal (Quebec), 15 July 2026 – Canada’s development finance institution, FinDev Canada, announces the signing of a USD 50 million financing package with SMBC to Equatorial Maranhão Distribuidora de Energia S.A. (or Equatorial Maranhão), an electricity distribution company serving nearly three million customers in Maranhão, Brazil. This transaction includes an initial USD 30 million loan from FinDev Canada and USD 20 million loan from SMBC, one of the largest global banks in project finance. This transaction represents our first-ever co-financing with SMBC in the sustainable infrastructure sector.  

The project mobilizes capital from the private sector, deepens Canadian economic partnerships with Brazil, and contributes to Canada’s broader foreign policy objectives in the Southern Hemisphere. The loan will improve electricity distribution by expanding and enhancing Equatorial Maranhão’s grid distribution network, including in rural and low-income areas. Through the commitment, Equatorial Maranhão is expected to increase the number of new connections, reduce network losses, and lower the average frequency and duration of electricity service interruptions.  

While access to electricity is almost universal in Brazil , some remote communities still experience limited or no service. Equatorial Maranhão, the main electricity distribution company operating in the State, is well-positioned to expand electricity access across the underserved, low-income state where grid reliability remains inconsistent. As a result, 49% of FinDev Canada’s loan proceeds will support the expansion of Equatorial’s distribution system, including new substations, distribution lines, and feeders. It is anticipated to reach more than 20,000 new customers, primarily in rural municipalities with many gaining electricity access for the first time. The remaining 51% of the loan proceeds will support improvements in service reliability through maintenance and enhancements across the network’s operations and equipment. 

Equatorial Maranhão is committed to advancing gender equality across its activities, particularly in operational and technical roles where representation is low. In addition to its 2X-alignment, the company aims to advance gender-inclusive practices through workplace initiatives, such as creating an electrician apprenticeship program. 

“FinDev Canada’s financing to Equatorial Maranhão strengthens Canada’s strategic positioning with Brazil, a key South American trading partner for Canada. This commitment will deliver reliable electricity distribution to many for the first time, while also advancing gender equality and supporting local employment opportunities in one of Brazil’s most economically vulnerable states,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada. 

“SMBC is proud to partner with FinDev Canada to support Equatorial Maranhão in advancing social and sustainable development in Brazil. SMBC is honored to have acted as Structuring Bank, Social Loan Coordinator, and Sole Hedge Provider in the USD 50 million Senior Unsecured Social Loan Facility. This transaction underscores SMBC’s commitment to sustainable finance across Latin America, as well as the bank’s expertise in structuring and derivatives,” said Joaquim Marques, Managing Director and Head of C&IB and Client Coverage, SMBC Brazil.