The lender and the property-owning real estate group strengthen their commitment to sustainability with the formalization of a €525 million green loan. The green loan is the conversion of a syndicated loan signed in 2016. BBVA, besides being one of the participants in the loan, is one of the sustainable coordinators who have made this change possible, to maximize the sustainability of Gmp’s office building development projects.
This conversion of the syndicated loan signed with leading Spanish and international lenders is in line with BBVA and Gmp’s strategic commitment to sustainability. To be considered green, a loan signed between a banking institution and a third party is required to promote environmental sustainability and be qualified as such by an environmental rating consultant. In this occasion, consulting firm Arup certified the loan as green in compliance with the ‘Green Loan Principles’.
In this case, 74 percent of the total syndicated loan was converted to green. This conversion reinforces Gmp’s push to develop sustainable office buildings, understanding sustainability in the broadest sense of the term: from the adoption of environmentally-friendly practices, to the financial viability of its properties and the well-being of their occupants.
It is worth noting that this is not the first sustainable financing agreement signed by BBVA and Gmp. In 2018 they signed the first green loan in the Spanish real estate sector, for a total of €68 million, to finance the renovation of its flagship Castellana 77 building in Madrid, after which it earned Platinum status according to the LEED rating system in the Core & Shell category, one of the world’s most prestigious services for the certification of the sustainable performance of buildings.
BBVA, a leading partner in the world of sustainability
BBVA approved its ‘Pledge 2025' in 2018, through which the bank committed to mobilize €100,000 billion through 2025 in green financing, sustainable infrastructures, social entrepreneurship and financial inclusion. Under this premise, the bank puts its skills, knowledge and expertise in sustainable finance at the service of its customers. Between 2018 and 2019, BBVA mobilized €30 billion, one third of the total pledged.
In the wholesale market, BBVA ranks among the most active financial institutions in the bond placement and the sustainable lending segments. Also, the bank has developed a transactional product framework in line with the UN Sustainable Development Goals, thanks to which it is capable of delivering a comprehensive range of solutions, including supplier credit, factoring, letters of credit, renting or leasing. All this while still breaking new ground in the search for sustainable solutions for private customers and SMEs.
In recent months, the bank has rolled out products such as a loan for the development of green housing products, the green-car loan (for individuals) or a green-car loan (for SMEs and self-employed workers).
Gmp, with a focus on the sustainability of its buildings
Founded in 1979, Gmp is one of the leading unlisted Spanish property-owning real estate groups. From the outset, Gmp has followed a firm property-owning approach. This focused strategy has allowed it to achieve a solid position in the Spanish real estate market as a specialist in the developing, investing and managing high-end offices and business parks in Madrid.