BBVA expands its offer of sustainable and innovative products with the launch of financial contracts linked to thematic investment strategies. From June 4 until June 22, BBVA’s retail customers in Spain can invest in a sustainable financial contract linked to an ESG investment strategy.

The supply chain is the set of elements that allows companies to deliver a product or service in order to satisfy the needs of the end customer. The COVID-19 crisis has put the resilience and adaptability of these essential business systems to the test, increasing the urgency to adopt measures and make them more resilient to potential future threats.

BBVA has executed its first sustainability-linked interest rate swap for the glass bottle design and manufacturing company Vidrala. The conditions of this product are tied to the company reducing its carbon footprint, and will allow it to transform variable flows into fixed flows, thus reducing the interest rate risk.

BBVA and Funespaña formalized a sustainability-linked loan with KPI metrics, becoming the first case of sustainable financing in the Spanish funeral sector which will include three sustainability indicators. The seven-year financing in which the fixed interest rate that the company will pay depends on the fulfillment of three indicators, one environmental and two social. To carry out the operation the bank acted as a sustainable coordinator and Valora as a sustainable consultant.

Asia has become the world’s fastest growing economic region of the 21st century and currently plays a critical role in the global supply chain. According to figures provided by BBVA Research, between 2011 and 2021 the region generated 60 percent of global economic growth and one in every two million dollars of investment. And this contribution is expected to increase to 65 percent between 2017 and 2027. This growing trend is driving the global presence of Asian multinational companies as well as the expansion of global multinationals into Asia, where 43 percent of the 5,000 largest companies of this type are currently present. The region represents an important export center and a very attractive domestic market.

BBVA’s Quantitative Investment Strategies business, geared toward institutional investors, has completed its first family of indexes specialized in sustainability. In addition to the  indexes that were previously announced, two more are joining the family: ‘Solactive BBVA ixS Global Inclusive Growth’ and ‘Solactive BBVA ixG Global Governance & Board Diversity’. These indexes make it possible to invest in high growth global companies that are aligned to the United Nations Sustainable Development Goals, and in leading global companies in corporate governance, respectively.

The telecommunications company Orange has become the first operator in Spain to incorporate Bizum into its means of payment. BBVA was the institution that provided the contractual and technological framework to make this possible. As of this week, all Orange customers of the Orange, Jazztel and Amena brands, regardless of their banks, will be able to carry out certain transactions with this payment method that´s faster than a card and that complies with PSD2 requirements.

El Corte Inglés and BBVA have signed an agreement to include Bizum as a payment method for the online purchases customers make on both El Corte Inglés’ website and app. The bank collaborated with the distribution group by providing the contractual and technological framework to allow the company to add this new PSD2 adapted payment system, reducing the average time to make a purchase compared to card payments.

Green, social and sustainable bonds have been growing exponentially in recent years. This year in particular, social and sustainable bonds are playing a fundamental role in companies and the markets due to the COVID-19 health crisis. The team at BBVA Global Markets Research is constantly analyzing this market. This is a summary of the latest news you need to know to stay up to date on this ever-changing financial product.

BBVA has created a new supply chain finance solution to compete and lead the business in Latin America, the U.S. and Europe. The tool allows for the centralized management of payments, optimizing corporate clients’ working capital while helping to improve the financial health of their suppliers. All of this with a unique digital experience thanks to the simple and intuitive navigation.

If the context in which banks and companies interacted last year was already complicated due to the political and economic uncertainty, combined with the low interest rate scenario, the arrival of the COVID-19 pandemic last March further complicated this context by forcing nearly everyone into lockdown. Investment banks were a key component for the survival of large corporations. Jose Ramón Vizmanos, the Head of Global Client Coverage at BBVA Corporate & Investment Banking, explained this to the financial newspaper Cinco Días in an interview this summer.

BBVA and Grupo Piñero agreed three sustainable bilateral financing deals on behalf of Levantur. These are the first sustainable bilateral loans to be guaranteed by Spain’s Official Institute of Credit (ICO). The Spanish tourist Group will use the financing for liquidity and working capital needs arising from the economic impact caused by the COVID-19 pandemic.

BBVA and Acerinox make history by closing the first sustainable transaction in the steel industry in Spain. The deal, a bilateral loan totaling €80 million with a maturity of five years, is intended to partially finance the Acerinox acquisition of VDM Metals.

Growing interest in sustainability across all segments of society has led to innovations in sustainable finance offerings, specifically in the world of corporate financing. Issuances of bonds linked to sustainability criteria are among the latest market developments. Analysts at BBVA Global Markets Research explain the basics and share with us their view of the product.

BBVA acted as the sole advisory bank and bookrunner in the issue of the bond, Spain’s first in support of the public health system and to combat the COVID -19 outbreak. The bond, issued by the Community of Madrid, was entirely by Spanish insurer MAPFRE, will be the underlying asset of MAPFRE Compromiso Sanitario, the three-year asset-backed fund announced earlier this week by MAPFRE AM.

It is the first international sustainable supply chain finance line (a product also known as confirming or reverse factoring) set up by Acciona, a leader in providing sustainable solutions for infrastructure and renewable energy projects. The €15 million line will be used to streamline payments to suppliers in the ‘Ness Energy Project’, a waste-to-power plant in Scotland. As a result, a total of 25 European suppliers will benefit from the early collection of the receivables they issue in consideration for services rendered to this infrastructure.

BBVA is expanding its range of sustainable products. Starting on December 2nd, the bank will begin selling sustainable financial contracts. BBVA will invest the amount obtained from customers in companies that are considered sustainable based on certain criteria for inclusion, which will determine the green, social or sustainable nature of the investment.

Generali has just issued, together with BBVA and seven other banks, its first green bond amounting to 750 million euros. This is the first bond from a European insurance company and the largest to date. BBVA acted as deal manager and joint bookrunner.

Global Finance has crowned BBVA as the world’s best bank for corporate clients in this year’s edition of its flagship Best Global Banks awards. Thus, the prestigious publication recognizes the excellence of the product and service portfolio that the bank offers to small, medium and large business through its different business units.

Within the different types of sustainable loans, Revolving Credit Facilities (RCF), the already known financing product, have become increasingly popular in recent months. Today we know that this type of product can also be sustainable, but what exactly is a Revolving Credit Facility?

Sustainability is a concept that we are hearing more and more frequently because it poses a growing concern for society as a whole – for both individuals and companies. Sustainability refers to satisfying current needs without compromising future generations’ ability to meet their needs, while striking a balance between economic growth, environmental protection, and social well-being. This is a guide to explain the most common acronyms we come across when talking about sustainable finance.

BBVA served as sole sustainable agent in the first syndicated revolving credit facility in Latin America, signed with Fibra Uno, a strategic client for the bank. The transaction is also the first sustainable transaction by a real estate business in the region and the first facility to be arranged in accordance with the ‘Sustainability-Linked Loan Principles’ in Latin America. BBVA was also the joint bookrunner and lead arranger in the transaction, which involved a  total of 11 banks.

Redexis has made its €300 million syndicated revolving credit facility sustainable by extending its maturity profile, reducing the average cost of its debt and reinforcing its socially responsible commitment. BBVA acted as sustainable coordinator in this transaction, the first ever by the Spanish energy infrastructure company in the sustainable financing market.

BBVA is debuting its recently announced framework for sustainable transactional products linked to the United Nations (UN) Sustainable Development Goals (SDGs) in Italy with an operation formalized with Iren, one of the leading multi-service companies in the country.

BBVA acted as a sustainable agent, together with Santander, in ACCIONA’s first sustainable syndicated loan of €675 million. In this type of financing, the interest rate is adjusted based on the company’s performance in sustainability parameters.

The deal, structured as per the German debt instrument, is worth €220 million, which will be allocated to sustainable projects. Blockchain technology was used to manage the negotiation of the deal, and both BBVA and Madrid’s regional government used their own nodes to establish a network between the two parties.

Digital loans (or D-loans) are a type of corporate bank financing (which could also come in the form of credit facilities) for which the price is linked to the company’s degree of digitization. The digital maturity level is determined annually by specialized independent consulting firms after a thorough analysis. If the company improves its level of digitization, the conditions of the bank financing also improve. By doing so, the company aligns its financial instruments with its corporate strategy, and has a financial incentive to improve its degree of digitization and accelerate its digital transformation over time.

Iberdrola has successfully signed, with BBVA acting as lead arranger and sustainable agent, a new €1.5 billion multi-currency syndicated credit facility linked to sustainability criteria. This is the first transaction aligned with the ‘just transition’ concept, introduced in the Paris Agreement.

The telecommunications industry will be the protagonist of the next wave of green bond issues in Europe. The green bond market took its first steps in 2007 and since then has bloomed into a full-blown financing alternative. “The green bond issue opportunity may not be as evident for telcos as it was for the utilities that led the first wave of green corporate issues, but it makes all the sense in the world,” says Regina Gil, Head of Debt Capital Markets Europe and Asia at BBVA, in an interview with Expansión.

The Climate Bonds Initiative recognized BBVA for its global leadership, best practices and innovation in the field of sustainable financing at the 2019 Green Bond Pioneer Awards.  The bank received three awards for the publication of its framework for sustainable bonds tied to the UN Sustainable Development Goals (SDGs); for being the first financial issuer of a green bond in Spain; and for issuing the first green bond from a financial institution in Mexico.

BBVA and Gestamp have restructured an existing €280 million revolving credit facility, changing the terms so it qualifies as a sustainable operation and increasing the total value to €325 million. With this operation, the multi-national engineering company dedicated to the design, development, and manufacturing of metal components for the automotive industry becomes the first in its sector to be certified by the environmental consulting firm Vigeo-Eiris for closing a financing deal of this kind. BBVA acted as the deal’s sustainability coordinator.

BBVA has once again made history, completing Portugal’s first sustainable commercial paper program with one of its strategic clients in the country, The Navigator. BBVA was the agent bank and bookrunner for the €65 million operation, advising the client throughout the entire process, and the sole source of financing for the operation.

The  definition of “green loans” has been further refined with the most recent revision of the Green Loan Principles. Revolving credit facilities, which have popularly been recognized as sustainable loans, can also be considered green if they qualify with at least one eligible category over the course of the their life.

In February 2018, BBVA announced its Pledge 2025, a strategy to fight climate change and promote sustainable development with an ambitious goal of mobilizing €100 billion in sustainable financing by 2025. By the end of February 2021, the bank had already mobilized more than €50.2 billion. However, the institution’s commitment to green and social finance predates the formalization of this commitment; in fact, BBVA is one of the most recognized institutions among large companies and clients for its leadership in offering sustainable products.

Last year, a product that had been practically unheard of took the world of corporate financing by storm: green loans. These are loans aimed at advancing environmental sustainability and until quite recently came under the umbrella of Green Bond Principles. As of a few months ago they now have their own guidelines known as Green Loan Principles.

Companies, just as individuals, have financial needs related to the management of liquidity and working capital in the short term. The term ‘Working capital’ makes reference to those solutions, which include ‘factoring’, ‘confirming’, bilateral loan, commercial discount, guarantees, ‘leasing’ and ‘renting’.

Having successfully carried out the first pilots in the world of a loan and a corporate credit facility using blockchain, BBVA has signed a new loan with ACS using this technology. The deal shows that BBVA Corporate & Investment Banking is continuing to focus on an innovative financing model for its corporate clients.

The trade media Structured Retail Products (SRP) has recognized BBVA in six of eight categories for which the bank was nominated. In its 2018 awards publication, the organization underscores BBVA’s capabilities as a global structured products house for foreign exchange and interest rates. BBVA was singled out in the distributor category, winning best distributor performance in Peru and Mexico, best distributor in Peru, and was one of the finalists for best distributor in Mexico.

BBVA has joined RE100, a collaborative, global initiative uniting the world’s most influential businesses committed to sourcing 100% of their power consumption from renewable sources before 2050. In doing so, businesses convey a powerful message to policymakers and investors: We need to expedite the transition towards a zero-emissions economy.

BBVA Bancomer has been crowned as the most innovative bank in Latin America in this year’s edition of British publication Global Finance’s The Innovators 2018 awards, which recognize the institutions that systematically identify new businesses and design new financial tools. With this award, the magazine acknowledges the institution’s value proposal, which includes a customer-centric data-based user-friendly design, developed in collaboration with the fintech ecosystem.

BBVA has signed a financing contract with Forestalia, Mirova, GE and ENGIE to develop the first 300 megawatts (MW) of wind power free of subsidies and incentives in Spain. The 9 wind farm complex, dubbed the Goya Project, will be built in the province of Zaragoza. The 300 MW were awarded in the first renewable energy auction in Spain, held in January 2016, in which Forestalia was the largest bidder. This is also the first green loan to be granted in Spain under the “Green Loan Principles” in which BBVA has coordinated the issue, with Altermia providing Second Party Opinion.

As flagged in the announcement of its strategy for climate change and sustainable development in its contribution to the United Nations Sustainable Development Goals, BBVA has unveiled its framework for the issue of SDG-linked sustainable bonds.

Renovalia is the first company to secure a ‘green project finance’ loan to fund the development of a renewable energy project in Spain. BBVA acted as ‘green loan coordinator’ of this €74 million facility, which will allow the company to fund Project Wind, which envisages the construction of two wind farms, one in Lleida and one in Barcelona, with 70 MW of combined installed capacity.

What is transaction banking? It is the side of banking that addresses the operational needs and day-to-day transactions of business, corporate and institutional customers. It also provides cash management services where the short-term management of a company’s liquidity is a key, using instruments and services designed for the management of incoming and outgoing cash flows, international commerce, and asset management.

A private company goes public when it lists its stock for the very first time in a stock exchange, where it can be bought and sold by the general public. This type of transaction is known as an Initial Public Offering, or IPO.

Iberdrola has signed two new sustainable syndicated loans for a total of 5.3 billion euros, the largest ever signed globally. BBVA has led these transactions by acting as a sustainable agent.

BBVA has acted as a Green Agent for a green credit in the amount of 800 million euros for Red Eléctrica España S.A. (“REE”). This is the first syndicated green revolving credit facility in Spain, and also the first of its kind in the electric utilities sector.

BBVA has been widely recognized for its capabilities in structured products in Latin America. Specialized publications such as Structured Products, Structured Retail Products and mtn-i have confirmed BBVA’s regional leadership in this business area, presenting the bank with numerous awards.

A swap is an agreement for a financial exchange in which one of the two parties promises to make, with an established frequency, a series of payments, in exchange for receiving another set of payments from the other party. These flows normally respond to interest payments based on the nominal amount of the swap.

Antoni Ballabriga, Global Head of Responsible Business at BBVA, took part this Tuesday in a regional roundtable on the progress of sustainable financing, in an event organized in Switzerland by the UNEP Finance Initiative (UNEP FI) in association with the Swiss Sustainable Finance platform (SSF).