ENGIE, Brazil’s largest private-sector energy company, active in electric energy generation, trading and transmission, gas transportation, and energy solutions, and present in Rio de Janeiro for over 25 years, joins other major companies mindful of small businesspersons’ difficult situation in the city and becomes a donor to the Estímulo 2020 credit platform, now available in Rio de Janeiro.

Estímulo 2020 is Brazil’s first 100% private-sector fund in support of small businesses affected by the COVID-19 crisis, offering credit under beneficial terms. The initiative is already available in São Paulo and Minas Gerais. With donations from companies like Vale, Dasa and ENGIE, among others, the initiative was released in Rio with BRL 10 million in funding to financially assist businesses in the state.

“Our support to this initiat5ive is consistent with the actions we have been carrying out since the pandemic began. We believe that we will all come out stronger from this if we help and support the most vulnerable businesses, which employ many and are connected with several value chains,” said Baurício Bahr, CEO of ENGIE Brasil.

Estímulo 2020 provides working capital in an amount equivalent to up to one month of a firm’s (pre-pandemic) sales, charging 6.5% annual interest, a 3-month grace period and payment in up to 15 installments. Approval criteria take account of applicant businesses’ operational indicators and background. The movement continues to raise donations and attract new partners from the market. To gain access to financial support and other benefits, businesses must register at www.estimulo2020.org.
ENGIE’s CEO emphasized that credit supply under special terms and conditions is crucial at this point to keep small businesses from failing. This contributes to economic recovery and saves jobs. “The pandemic showed us that Brazilian society has evolved a lot and become more sensitive and solidary. These are values that we share, embracing actions that encourage our employees volunteer,” he stated.
GK Ventures’s Eduardo Mufarej, who first devised the project, underscores Estímulo 2020’s potential for expansion. “After the massive success in São Paulo and Minas Gerais, Estímulo comes to Rio. As Brazil’s first relief fund, the idea behind Estímulo 2020 has always been this: to gather together all of those who realized that our economy lies on these firms, which generate jobs and income for the population. I am very glad that we were the pioneers for this type of initiative, which several partners in São Paulo and Minas Gerais and Rio have embraced.”
ENGIE actions in support of measure to face Covid-19
In line with the Group’s global strategy, ENGIE Brasil has promoted social actions, volunteer works and, now, support to small businesses as a means to help face the pandemic’s impacts. Courting the new partnership, the company has so far donated approximately BRL 7 million on several fronts and in various Brazilian regions.
Actions include a BRL 1.5 million donation to the Fundação Instituto Oswaldo Cruz (Fiocruz) emergency fund, intended to increase production of Covid-19 test kits. In addition, Transportadora Associada de Gás (TAG), an ENGIE-controlled company, executed an agreement with Fiocruz and injected BRL 1 million for implementation of the institute’s new Covid-19 test processing center in Bahia. TAG also donated BRL 250 thousand for the purchase and distribution of basic staples to communities in need in the Amazon, where the gas transportation company owns and operates 800 kilometers of pipelines between Urucu and Manaus.
The ENGIE Foundation donated EUR 100 thousand (approximately BRL 600 thousand) to renovations of the Fundão University Hospital, in Rio de Janeiro, providing the funding for expansions and the preparation of 60 permanent ICU beds to be allocated at first to treatment of Covid-19 patients.
ENGIE also joined the Brazilian Energy Traders Association – Abraceel initiative for the creation of the Abraceel ICU Wing of the Albert Einstein Hospital, in São Paulo, with 20 new beds. The Company’ donated BRL 150 thousand.
Another initiat5ive has been an injection of approximately BRL 840 thousand to institutions in areas surrounding the Company’s power plants, making funding available principally to City Halls, hospitals and municipal health bureaus to purchase Personal Protection Equipment – PPE, hand sanitizer and respirators. The initiative reinforces the ties between the plants and neighboring communities in over 80 municipalities.
The Company also partnered with L’Oréal Brasil, donating all of the electric energy required for production, by L´Oréal, of 250 thousand personal hygiene kits and 500 thousand bottles of hand sanitizer at the cosmetics manufacturer’s units.
Together with the Rio Grande do Sul Federal University, ENGIE acquired testing equipment for Covid-19 diagnosis and test inputs. The donation was in the amount of BRL 500 thousand.
Volunteering
To engage its employees ENGIE developed a nationwide campaign to encourage volunteering, match8ing BRL1 or BRL 2 for every BRL 1 donated by employees. An approximately BRL 1 million was raised, with the participation of 2,000 employees. The funds were used to assist approximately 70 institutions with the purchase of staples baskets and cleaning materials for vulnerable families, in addition to PPE for hospitals and healthcare outposts.