The second largest Bank in Spain, Banco Bilbao Vizcaya Argentaria (BBVA), has announced the release of the first structured green bonds on its own blockchain platform.
In the course of private placement insurance company Mapfre has invested €35 million in debentures for a period of six years, it said in a press release.
The funds raised are intended to Finance environmental projects in accordance with sustainable development BBVA. The corresponding “green” certificate issued by international certification and classification society DNV GL, highlighted in the statement.
“Through this transaction BBVA confirms its firm commitment to sustainable financing, and emerging technologies. The use of technology distributed registry for this transaction has allowed us to streamline processes and reduce terms of harmonization, in line with our commitment to excellence in customer service,” said head of global sales at BBVA, Juan Garat (Juan Garat).
Spanish Bank noted a number of benefits of using a blockchain-based platform for the issuance of financial products:
- a distributed registry provides permanence and traceability of agreed terms and conditions and all participants have the access transaction;
- the platform provides the client with flexible terms to choose the best configuration of the product, allowing to best adjust it for your conditions;
- the solution works for the most complex products, implementing self-service approach for customers who know what product they want to;
- the process is fully digital, which harmonize the structure and prices, creating documentation for the bonds are part of a single tool.
Despite the fact that the head of the BBVA Carlos Torres (Carlos Torres) has previously called the blockchain technology immature, the Bank is actively involved in the study and implementation of solutions based on it. BBVA joined DLT-consortium initiated by the European Commission, jointly with BNP Paribas and MUFG, the world’s first issued the syndicated loan in the blockchain. In April last year, the Bank changed the process of issuing loans on the blockchain, and in December for the first time used the DLT-technology for lending to foreign clients — distributor of Porsche Holdings.