Spain’s BBVA Bank Issues $40 Million Green Bond Using Blockchain Technology

Spain’s BBVA Bank Issues $40 Million Green Bond Using Blockchain Technology

Banco Bilbao Vizcaya Argentaria (BBVA), Spain’s second-largest bank has revealed publicly in a press release dated 19th Feb 2019 that it has launched its first ever blockchain supported platform for structured green bonds. Structured bonds are one of the negotiable assets that mature after a fixed period and bear a return that can be in the form of interest rates, an index, securities or an exchange rate.

BBVA has sealed the deal with Mapfre, a Spanish insurance house based in Madrid that boasts of its solid investments (worth $40 million) in sustainable products.

The press release mentions that to finalize this deal, the bank has issued structured green bonds supported by blockchain platform to settle the terms & conditions.

It also makes a special mention of the funds being allotted specifically for green projects that fall under sustainable development goals of BBVA.

Juan Garat, head of global sales at BBVA mentions that the company aims to concentrate specifically on sustainable solutions for users, saying, “Employing the distributed ledger technology enabled us to carry out this transaction through easing the processes and put in order the negotiation time frames, which is aligned with our pursuit of excellence in customer service”

In around mid of December last year BBVA made a public announcement about closing a loan of 150 million-euro ($169 million) on the blockchain. This deal was the bank’s first loan in the blockchain domain.