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Corporate lending 14 Sep 2020

BBVA supports Grupo Piñero in signing the first ICO-backed bilateral financing deals

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.

Having worked with BBVA in the past on several sustainable deals, Grupo Piñero once again turned to the bank in order to close three sustainable finance agreements for its parent company, Levantur, thus becoming the first company to obtain ICO endorsement for bilateral sustainable operations. The agreements entail two new financing deals and the renewal of a line of credit. The financial terms of the three deals are dependent on the company’s Environment, Sustainability, and Governance (ESG) performance, which will be monitored by the rating agency, Vigeo Eiris.

Grupo Piñero thus reaffirms, with BBVA’s support, its strategic, long-term, and overarching commitment to sustainability, which is fueled by the company’s conviction that its success unfailingly depends on its making a positive economic, social and environmental contribution to the destinations where it operates.

Source: Grupo Piñero

BBVA is the preeminent bank serving Spain’s large hotel chains, and in the last few years it has led important deals — both in financing and financial advisory services — in Spain, Mexico, Turkey, and other countries. The bank has a team of experienced professionals with expertise in the sector, which covers the entire spectrum of financial services from transactions to advice on topics such as acquisitions and divestment, project financing, and capital markets.

Jose Ramón Vizmanos, head of Global Client Coverage at BBVA Corporate & Investment Banking, explains: “During the COVID-19 crisis, BBVA’s role has been — and will continue to be — to provide support to the travel and tourism sector, to be close at hand. This sector has been especially hard hit due to restrictions on travel and the widespread mandatory closing of hotel facilities. BBVA has provided solutions aimed at guaranteeing the solvency of these companies, with the goal of limiting the duration of the crisis.”

BBVA, a leader in sustainable finance

Demonstrating its firm commitment to the fight against climate change, in 2018 BBVA approved its Pledge 2025. As part of this initiative, the bank has already secured €40 billion of its €100 billion 2025 target for green financing, sustainable infrastructure, social entrepreneurship, and financial inclusion. The bank has the means, knowledge, and experience to provide its clients with superior advice on sustainable financing solutions and is playing a key role in the development of this market.

As one of the most active organizations on the world stage and the leader in Spain, BBVA has proven itself to be a dominant player in the sustainable loan business. In 2019, the bank participated in 46 related deals, of which it led a total of 23 in Europe and America, for clients in various sectors. Furthermore, BBVA is the bank that has most frequently assumed the role of coordinator and/or sustainable agent in these agreements.

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