BBVA ENHANCED ABS GREEN MORTGAGES

Promoter – Financial Intermediary

BANCO BILBAO VIZCAYA ARGENTARIA SA

Location

• Spain

Description

The operation concerns 100% green mortgages for private individuals and real estate developers to finance energy efficiency and renewable energy projects in Spain.

Additionality and Impact

The operation will target investments in Climate Action initiatives, more specifically energy efficiency investments in buildings by individuals (new construction) carried out in Spain. Some of the projects are expected to be located in less developed and cohesion regions.

The operation enhances access to finance for final beneficiaries for Climate Action related investments and improves financing conditions for them through long term tenors and favourable financing conditions.

Financial intermediaries, including BBVA, are pivotal in this transition, as financing is crucial for unlocking the investments needed for its realisation. Addressing climate change is a central aim for BBVA, which has established itself as a frontrunner in green financing and has recently been recognised as the most sustainable bank in Europe. In December 2023, for the fourth year in a row, the Dow Jones Sustainability Index (DJSI) ranked BBVA highest in the European banking sector. The DJSI, the premier global sustainability index, announced its latest rankings on December 8, 2023, including 27 banks worldwide. BBVA also stands out for its leadership in issuing Green Bonds within the EU.

BBVA has publicly committed to mobilise green finance lending for EUR 300bn between 2019 and 2025. The EIB is a key partner to BBVA to achieve this target and has developed specific EIB products, including those targeting green financing with EIB requirements for its branch network and clients.

Objectives

The aim is to support climate projects in sectors supporting both national and European targets for energy efficiency and renewable energy, as well as the reduction of CO2 emissions. As such, the project meets the EIB and EU Taxonomy requirements and supports EU objectives in terms of climate action and diversification of energy supply.

Sector(s)

• Industry - Construction

Proposed EIB finance (Approximate amount)

EUR 90 million

Total cost (Approximate amount)

EUR 180 million

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 27/03/2024