BBVA has formalized its first sustainable-linked deal in Belgium with Cofinimmo. The transaction consisted of increasing an existing revolving credit facility to €25 million and linking it to a fundamental environmental indicator for its sector.
The original deal, which was signed in 2020, consisted of a revolving credit facility for €20 million. Now Cofinimmo, in line with its global strategy, in which environmental criteria play a fundamental part, has made it sustainable at the hands of BBVA.
The way to do this was to link the price of the credit line to the variation in the group’s energy intensity (kWh / m2), an efficiency measure that reflects the energy consumption of its asset portfolio. This way, if Cofinimmo reduces its energy intensity, it will obtain a reduction in the financing margin, while an increase in its energy intensity will see an increase.
Pedro Garrido, BBVA's Head of Corporate Lending for the United Kingdom and Northern Europe, commented: “For BBVA, sustainability is a strategic priority. We want to contribute to the transition towards a low-carbon economy, and that is why we support and accompany our clients who, like Cofinimmo, include their environmental objectives in their financing strategies.”
BBVA, a leader in sustainable finance
In 2018, as a sign of its responsibility in the fight against climate change, BBVA announced its Pledge 2025, with a target to mobilize €100 billion in green financing, sustainable infrastructure, social entrepreneurship, and financial inclusion. Three years later, and after having managed to reach €59 billion, the bank has now increased its goal to €200 billion. The bank has the capacity, knowledge and experience to provide its clients superior advisory services for sustainable financial solutions and is playing a key role in developing this market.
BBVA has been a pioneer and the dominant player in the sustainable loan business. Today it is one of the most active organizations on the world stage in this field and the leader in Spain. In 2020, BBVA led a total of 52 green and sustainable operations, 15 of which were syndicated loans and 13 global bilateral operations (Europe and America), for clients in various sectors.