BBVA and Gestamp have restructured an existing €280 million revolving credit facility, changing the terms so it qualifies as a sustainable operation and increasing the total value to €325 million. With this operation, the multi-national engineering company dedicated to the design, development, and manufacturing of metal components for the automotive industry becomes the first in its sector to be certified by the environmental consulting firm Vigeo-Eiris for closing a financing deal of this kind. BBVA acted as the deal's sustainability coordinator.
This revolving credit facility is one of the tranches of the syndicated loan drawn up for the company in 2014, which was novated in February. The deal qualifies as sustainable because its margin is tied to the company's ESG (environmental, social and governance) ranking, which in this case is certified by the environmental consulting firm, Vigeo Eiris.
Sustainability is a priority for Gestamp, a company that has endorsed the United Nations Sustainable Development Goals (SDGs). Specifically, it has aligned its business activities and the social initiatives it undertakes in the different communities where it has a presence to 6 of the 17 SDGs.
Gestamp's Finance Director, Miguel Escrig, pointed out that “this line of financing is consistent with Gestamp’s strategy, which focuses on safer, more lightweight – and thus cleaner and more sustainable – means of transportation. We have consistently brought this value to our production facilities, and now we are incorporating it into our financing mechanisms".
BBVA, a leader in sustainable finance
As evidence of its firm commitment to the fight against climate change, in 2018 BBVA approved Pledge 2025, the initiative with which it aims to mobilize €100 billion by 2025 for green financing, sustainable infrastructure, social entrepreneurship, and financial inclusion The bank has the means, knowledge, and experience to provide its customers with superior advice on sustainable finance solutions and is playing a key role in the development of 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 indisputable leader in Spain and Italy. In the past two years, the bank has taken the lead on 25 sustainable finance engagements in Europe and the Americas for customers in various sectors.
2018 has proven to be the year when green, social, and sustainable bonds have come into their own and taken hold. As an issuing bank, BBVA approved its framework for issuing green bonds tying it to the United Nations SDGs. It successfully issued the inaugural green bonds for BBVA and BBVA Bancomer and the first bond of this kind for Garanti. As a structuring bank and underwriter, BBVA has secured a leading position in the market, acting as the bookrunner in 13 deals representing the placement of €7.89 billion.
Also in 2018, the bank made further inroads in its goal to help its corporate clients with their sustainable finance strategies. In an unprecedented move in the industry, the bank has developed a sustainable framework for transactional products – a framework tied to the United Nations SDGs. The new methodology facilitates the classification of its customers’ transactional banking operations designating them green, social, or sustainable.