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Climate change 21 Oct 2016

BBVA becomes most active Spanish financial institution in green bonds

According to the ranking compiled by the US company Bloomberg, BBVA tops the most active list of Spanish banks in the market for environmentally responsible financing. The trend is global and the volume of green bonds issued on the planet is reaching record figures.

BBVA is committed to sustainable financing strategies and is integrating environmental and social criteria in its products, to generate a positive impact. This commitment has been reflected in Bloomberg’s ranking, where it appears as the top Spanish financial institution for its activity as an underwriter of green bonds. Bank of America, Credit Agricole and JPMorgan lead the ranking.

Global commitment

The trend is spreading. In 2015, $41.3 billion of these bonds were issued, 15% more than the volume issued in 2014. BBVA Global Markets Research estimates that this year the figure may reach $50 billion, which confirms the market interest for these bonds that can obtain funding for exclusively environmental projects such as energy efficiency, investments in renewable energy and sustainability projects.

The reason for the success is that large corporations, banks and cities have started using this form of investment to finance the reduction of their environmental impact and carbon footprint, driven by the Paris Agreement on climate change. The consensus achieved, though not binding, has paved the way for a transition to an alternative economy that is less dependent on oil, gas and coal.

In the case of BBVA, it began to participate as a member of the Green Bond Principles back in 2014. These voluntary guidelines are based on transparency and integrity in the development of the market. In that year, the bank began to excel in the green bonds market by working with customers in this line, such as Acciona, EIB and GDF Suez.

BBVA’s commitment to sustainability and the environment is part of its Responsible Business Plan. Its priorities include developing products and services that contribute to generating solutions to challenges proposed by social and environmental problems. Green bonds, which, although they do not have a lower cost themselves, have shown great solvency in the market, have become an important tool to promote this responsible financing in the line that BBVA is working.

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