BBVA ABS OPERATION FOR GREEN FINANCING

Promoteur – Intermédiaire Financier

BANCO BILBAO VIZCAYA ARGENTARIA SA

Lieu

• Espagne

Description

The operation will support BBVA financing climate projects carried out by small and medium sized enterprises (SMEs) and mid-caps in Spain.

Additionality and Impact

The operation consists of a framework loan to finance the construction of highly energy efficient buildings located in Spain. The operation supports the EU's and Bank's priorities in the energy sector, the EIB's climate action objectives and will contribute to the achievement of Spain's National Energy and Climate Plan.

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.

The operation contributes to reduce the market failures linked to asymmetric information and principal/agent problem: Thermal comfort in the dwellings is ensured while households energy costs/consumption is kept to minimal levels. The risk of energy poverty, which has been accentuated with the recent increases in energy prices due to the Ukrainian conflict is therefore minimised.

The Financial Intermediary is deemed to be capable of implementing the operation considering its overall experience. The operation is expected to be both financially and economically viable, with a good economic rate of return (ERR) and positive broader social benefit.

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.

Objectifs

The aim is to enhance access to green mortgages for the final beneficiaries, in particular real estate developers.

Secteur(s)

• Aménagement urbain - Construction

Montant BEI envisagé (montant approximatif)

EUR 350 million

Coût total (montant approximatif)

EUR 700 million

Aspects environnementaux

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

Passation des marchés

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

Statut

Signé - 17/06/2024