BBVA signs the first ECA credit certified as 'green' with CESCE coverage
BBVA signed the first credit with CESCE coverage to receive “green” certification. BBVA granted a five year loan for €16.5 million to the Colombian company HIDRALPOR. This innovative operation allows BBVA to consolidate its leading position in sustainable finance on a global scale.
The credit will finance the trade contract signed between Voith Spain, subsidiary of the German Group Voith (the exporter) and HIDRALPOR, part of the Colombian group led by the MINCIVIL corporation (the importer). The purpose of the loan is to implement the “Hydroelectric Mine School Project”, specifically the design, construction and commercial start-up of the equipment and services needed for a hydroelectric plant in Colombia. In line with the Green Loan Principles and the UN Sustainable Development Goals, the operation was certified as “green” by the consulting firm AECOM.
The financing received the backing of CESCE, Spain’s Export Credit Agency (ECA). This export credit agency was created to support the country’s exports, facilitating access to credit by providing insurance and guarantees to lenders. In this operation, CESCE covers 99% of the political and commercial risks.
Francisco Fernández de Trocóniz, the Head of Global Trade & International Banking at BBVA, stressed the importance of this agreement: “This is one more step in BBVA’s sustainable finance strategy. We hope this operation represents the start of a path to the consolidation of this type of financing in the ‘trade finance’ world.”
Meanwhile, COO of State Account Business at CESCE Beatriz Reguero says: “Through the support for this operation provided by the Spanish government, CESCE reinforces its commitment to sustainable development through a project in a sector that is clearly in sync with the UN Sustainable Development Goals - goals which are also one of the essential pillars of our company’s corporate social responsibility policy.”
With this operation, BBVA is breaking down geographic barriers moving toward the globalization of green finance. It's a pioneering feat given that the borrowers involved in ECA transactions tend to be in markets where sustainable finance still has a long way to go.
BBVA, a leader in sustainable finance
BBVA has the ability, knowledge, and experience to provide its clients with superior guidance on sustainable finance solutions, both in bonds and loans, and is playing a key role in the development of both markets.
As a pioneer and key driver in the sustainable loan business, today BBVA is one of the most active banks on the world stage and the undisputed leader in Spain and Italy. In the past two years the bank has closed 21 sustainable transactions in Europe and the Americas for clients in various sectors.
Additionally, in 2017 BBVA was the most active bookrunner in the Iberian green bond market. The bank is recognized as 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 in euros and dollars.