IFC (World Bank Group) has announced a BRL 150 million (equivalent to approximately $68 million) equity investment in CPFL Renováveis, the leading Brazilian renewable energy generation company, as part of its Initial Public Offering (IPO). Proceeds from the primary offer of shares will be used to fund the development and construction of renewable energy projects and for potential acquisitions of projects generating electricity from alternative sources, such as wind, small hydros and biomass.

In total, CPFL Renovaveis and its shareholders raised as much as BRL 900 million (equivalent to approximately $390 million) by selling 28 million new shares and 44 million existing shares.

Grupo BTG Pactual, the lead underwriter in the deal, and Banco do Brasil SA (BBAS3) pension fund Previ agreed to buy as many as 71.9 million shares if demand fell short.

Loy Pires, Senior Country Manager for Brazil said:

"Brazil has a large, untapped potential of alternative sources of renewable energy which can help meet rising energy needs while reducing reliance on fossil fuel based sources and contributing to a low carbon future. IFC is pleased to support CPFL Renováveis in this critical stage in its growth and at a time when market conditions for raising capital are challenging."

CPFL Renovaveis was created as a joint venture between utility CPFL Energia SA (CPFE3)'s renewable-energy assets and local developer ERSA-Energias Renovaveis SA in August 2011. It has 1,153 megawatts of projects online including 15 wind farms.