BBVA has reaffirmed its leadership in sustainable financing with the execution and structuring of the first revolving credit facility (RCF) for the power utility A2A in Italy. The bank acted as an advisor, sustainable coordinator and documentation agent, heading a finance deal valued at €400 million euros.
The transaction, in which 5 banks, including BBVA, took part, makes A2A the first company to base the price structure of the syndicated loan on its ESG rating as well as previously selected KPIs.
Under the guidance of BBVA, the syndicated loan avails itself of a margin mechanism based on two parameters. Firstly, the ESG performance or ESG Rating of the company verified annually by Standard Ethics and secondly, by the performance of two carefully selected KPIs: waste processing capacity and the volume of renewable energy sold in the wholesale market, emphasizing the focus of the A2A Group on the circular economy and decarbonation.
Following having recently organized and structured the first sustainable loan in Italy, the transaction confirms BBVA’s standing as a key reference bank in the sustainable financing market. The transaction also bear out A2A and BBVA’s firm commitment to sustainability.
BBVA, a leader in sustainable finance
BBVA has the capability, knowledge and experience to provide its clients with quality advice on sustainable financing solutions both for bonds as well as loans, and plays a key role in the development of both markets.
BBVA has been a pioneer and main driver of the green loan business as the most active bank globally in this segment over the past 18 months, with a total of 16 operations in Europe and Latin America for clients from a number of sectors and is the undisputed leader in Spain.
The bank was the most active bookrunner in the green-bond market in Iberia in 2017 and is a global leader after having advised, placed and structured green bonds for clients in different sectors in Mexico, the U.S. and Europe, both in local currencies as well as euros and dollars.
The A2A Group is Italy’s largest local utility in terms of revenues and earnings, and the second Italian utility by installed electric capacity. A2A has a strong presence in northern Italy in all stages of the electric power generation chain (from production to distribution and sales) and the gas production chain (from the purchase to the supply to the end user).
A2A is also a leader in the urban heating segment, with a thermal capacity of more than 1,800 MWt and a distribution network of over 1,200 km. The company is also in the cutting edge of environmental services, processing over 3.4 million tons of waste, 1.8 TWh of electricity production, 1.3 TWht of heat production combining the output of its waste treatment and waste disposal plants. The Group also distributes electricity and gas, and is involved in the integrated water cycle and public lighting.