A loan is considered “green” when its purpose is environmental sustainability and is classified as such by an external body. Environmental consultants provide this certification by granting a green seal, or “green certificate”, which confirms that the debt instrument meets environmental, social and good governance criteria, and is in line with the Green Bond Principles. In this case, Vigeo Eiris acted as the independent environmental consultant.
This pioneering operation is a clear sign of the bank’s commitment to sustainable financing and the bank’s support for the development and implementation of green financial products.
This green loan is linked to Ferreycorp’s performance in certain environmental, social and good corporate governance indicators. The company gets a lower interest rate on the loan as it improves its performance.
“In the global ecosystem of green loans, BBVA is the pioneer and key driver of this practice that promotes the sustainability of responsible business. BBVA is the most active bank in the world with 22 green operations worth over €13 billion. We are proud of this agreement with Ferreycorp in Peru. It motivates us to continue working on financial solutions that help to take care of our planet,” Javier Balbín, BBVA Continental’s Head of CIB Peru said at the press conference.
“BBVA has the knowledge, the ability and the experience to provide its corporate clients comprehensive advisory services for sustainable financing solutions - both bonds and loans. We are playing a key role in developing both markets in Peru and in the world,” added the bank executive.
“We are proud to be the first Latin American company to receive this type of financing. It’s an expression of our commitment to sustainability and good governance in order to create value in the organization and in society,” said Patricia Gastelumendi, Corporate Manager of Finance at Ferreycorp.
The company was considered the best of 19 industrial companies in different countries, including Mexico, South Korea, China, among others.
BBVA offers a wide range of sustainable products - designed to finance environmental and social projects. The green projects seek to develop and implement environmentally friendly practices and solutions. And the social projects aim to improve education, health, employment or housing.
In this regard, BBVA recently announced its Pledge 2025 - the bank’s climate change and sustainable development strategy to help attain the UN Sustainable Development Goals and the Paris Agreement on Climate Change.
Ferreycorp, a leading corporation in capital assets and related services, is one of the most renowned Peruvian companies for corporate governance. In fact, it won the “Llave de la BVL” for the best corporate governance six times - most recently this year. The company also abides by the Bolsa de Valores’ (Lima stock exchange) Corporate Good Governance Index.
It is also part of the Dow Jones Sustainability Index for the Pacific Alliance (Mexico, Chile, Colombia and Peru), which includes 42 companies listed in the region’s stock markets that stand out for their sustainability.