Spain’s BBVA Bank Issues $40 Million Green Bond Using Blockchain With Mapfre Insurance
Spanish Bank BBVA Issues $40 Million Bond Using Blockchain Technology
The Spanish popular bank Banco Bilbao Vizcaya Argentaria (BBVA) announced that it is launching green bonds using blockchain technology. The information was released by the financial institution on February 19.
This structured green bond is a private placement in which MAPFRE invested €35 million in six-year term bond that is linked to the evolution of the five-year euro swap rate. This is a very important deal due to its dual nature. It is both sustainable and also high-tech.
According to the official press release, the funds will be financing green projects related to the Sustainable Development Goals (SDGs) that were created by the bank. Additionally, the bond has been categorized as gree according to the Second Party Opinion that was issued by DNV GL.
Juan Garat, BBVA’s Head of Global Sales commented about this deal:
“With this deal, BBVA reasserts its firm commitment to both sustainable financing and new technologies. Using DLT – distributed ledger technology – for this transaction allowed us to simplify the processes and streamline the negotiation time frames, which is in line with our pursuit of excellence in customer service.”
José Luis Jiménez, the Chief Investment Officer at MAPFRE, said that the deal contributes to the diversification of the portfolio of the company. Now, they are moving towards the diversification of their investments with a new innovative and sustainable product.
This is not the first time that BBVA is working with blockchain technology. In the past, the bank announced the closing of a 150 million-euro loan on the blockchain. This shows that the financial institution is very positive and bullish about the future of this technology. The bank has already been using blockchain technology and it could use it in the future for many other projects.
The bank has also joined the European Union (EU) International Association for Trusted Blockchain Applications. The main intention behind this association is to prepare clear regulations for companies to enter the market in the European continent.
Another bank in Spain that is working with blockchain technology is Banco Santander. Apparently, the firm is working with Ripple and testing services provided by the company in order to offer better services and products to its users.
Spain is also trying to regulate the cryptocurrency market. However, there are some challenges that the country is facing to have clear regulations in the market.