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Corporate lending 20 Apr 2018

BBVA leads the first green corporate loan in Latin America

BBVA has signed a $400-million-dollar green loan with Iberdrola, the first green corporate loan to be formalized in Latin America. This reasserts BBVA’s commitment to sustainable financing by supporting the development and implementation of financial products in the green format.

BBVA shares this commitment to sustainable development with Iberdrola, as is confirmed with this syndicated green loan signed in Mexico with the participation of ten banks, and in which BBVA has acted as administrative agent and BBVA Bancomer as global coordinator and green agent.

In line with the sustainable nature of the loan, the funds obtained will be used to finance socially responsible projects. Specifically, the Spanish energy group will invest the $400 million dollars in refinancing the construction of three wind farms in Mexico. The category of green has been accredited by the independent agency Vigeo Eiris, which certifies the correct application of the resources obtained according to the Green Loan Principles. Paul Hastings LLP and Ritch Mueller acted as Lender’s counsel in connection with the green loan.

With this transaction, Iberdrola ratifies its commitment to sustainable funding as part of the company’s undertaking to comply with the Sustainable Development Goals (SDG) in the UN’s 2030 agenda, which it has integrated into its strategy. Iberdrola also continues to be a pioneer in sustainable finance, after last year becoming the first energy company in the world to sign a green loan and the first Spanish company to issue a green bond, in April 2014.

BBVA, a leader in sustainable finance

BBVA has the capability, knowledge and experience to provide its customers with top-quality advice on sustainable finance solutions in both bonds and loans, and is playing a key role in developing both markets.

In the green loans business, in which BBVA has been a pioneer and is a fundamental driving force, the bank closed 2017 as the most active entity worldwide, with a total of 11 operations in Europe and Latin America for clients from various sectors and is the undisputed leader in Spain.

BBVA’s Pledge 2025

In line with the European Commission’s Action Plan on Sustainable Finance, BBVA has recently announced its Pledge 2025 the Bank’s climate change and sustainable development strategy designed to make progress in the achievement of the UN Sustainable Development Goals (SDGs) and the Paris Climate Agreement.

This is an eight-year commitment (2018-2025) based on the three pillars of finance, management and commitment. BBVA undertakes to mobilize €100 billion in green and social finance, sustainable infrastructures and agribusiness, social entrepreneurship and financial inclusion.

In its commitment to manage environmental and social resources and minimize the potential direct and indirect negative impact, BBVA has set a target for 2025 that 70% of the energy used should be renewable, and to reduce direct CO2 emissions by 68% on the 2015 figure.

In addition, BBVA has agreed to involve all its stakeholders to boost the financial industry’s contribution to sustainable development.

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