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BBVA becomes first bank in Peru to earn 'EDGE Champion' honor

BBVA has gained recognition from the International Finance Corporation (IFC), a member of the World Bank Group, as the first 'EDGE Champion' in the Peruvian banking industry, after certifying more than 250,000 square meters of sustainable construction built to EDGE standards.

Since 2021, the year BBVA launched its Crédito Hipotecario Verde or 'green mortgage,' the bank has logged a total of 117 real estate projects bearing the EDGE label, which is awarded to buildings that achieve resource efficiency of at least 20 percent in energy, water, and embodied energy in materials.

“We can proudly say that we have the first and only sustainable mortgage product offered by a private-sector bank in the country. We aim to continue providing Peruvian families with the opportunity to fulfill their dream of owning their own home, while helping to take care of the planet,” stated Fernando Eguiluz, country manager of BBVA in Peru.

Sustainable projects

The sustainable mortgage market in Peru has shown significant growth in recent years. BBVA closed 2022 having placed 261 million Peruvian 'sol' of its green mortgage loans. This is the only product in the country's private banking sector that is exclusively designed for the purchase of a green home. The bank is expected to close this year with over 600 million ‘sol’ in green mortgage placements to finance more than 1,000 real estate projects.

BBVA's sustainable home mortgage offering qualifies for the Mi Vivienda Verde (‘my green home’) government subsidy, which has seen significant growth in recent years. In 2022, BBVA arranged 1,195 transactions for an amount of 178 million Peruvian 'sol' benefiting from this government incentive. By the end of this year, both indicators are expected to be doubled.

"With our green mortgage loan and Mi Vivienda Verde subsidies we provide a strong offering that allows us to cover the entire Peruvian territory where there is investment in sustainable real estate development," said Marco Zamudio, Head of BBVA's Vehicle and Mortgage Business in Peru.

Fondo MiVivienda awards

Fondo MiVivienda recently honored BBVA with four awards for its performance in the social and sustainable housing business in the Techo Propio, MiVivienda and MiVivienda Verde programs.

"These accolades encourage us to continue growing in the real estate industry, where we are actively involved in fulfilling the dream of homeownership for all Peruvians, especially in the most vulnerable segments of the population. We now have a golden opportunity to contribute to the country's development with a clear social and global focus," said Manuel Piñán, Head of the Real Estate Business at BBVA in Peru.

'EDGE Champion'

Tábata Hinojosa, Deputy Head of BBVA's Corporate Real Estate Business in Peru, said that certified projects represent 60% of the bank's real estate portfolio, with an increasing focus on sustainable developments.

"So far we are the only bank to offer a green mortgage loan product. Due to the positive reception, many real estate developers are already opting for dual MiVivienda Verde and EDGE certification. EDGE certification requires compliance with several requirements, such as a minimum of 20% savings in water, electricity and materials. This translates into a benefit to the end customer by reducing their water and electricity bills by approximately 30%. In addition, we grant green bonuses from 11,000 to 25,000 'sol,' depending on the amount of finance" she noted.