BBVA Mexico and Nestlé form partnership to promote the transition to sustainability for up to 1,500 agribusiness suppliers
This is the first agribusiness deal where one of the signatories refers its own suppliers to the bank as candidate borrowers.
BBVA Mexico and Nestlé are expanding their "Crediproveedores" agreement to extend credit to up to 1,500 Nestlé suppliers in the agribusiness sector. Under the terms of the partnership, BBVA Mexico will consider granting credit on favorable terms to primary-sector suppliers designated by Nestlé as part of its value chain. The arrangement sets the stage for up to 300 million pesos in new credit.
According to Álvaro Vaqueiro Ussel, Head of Corporate and Investment Banking at BBVA Mexico, "The expansion of the Crediproveedores scheme with Nestlé represents a milestone in the commitment of both institutions to foster the development of SMEs that, in addition to being profitable, seek to support the environment and society. We appreciate Nestlé's strong commitment to its suppliers, to sustainability and to Mexico."
Fausto Costa, CEO of Nestlé Mexico, said: "This is one more step in our commitment to the sustainable development of the Mexican countryside and in the transition to regenerative food systems. This alliance allows us to reaffirm our commitment to sustainability and to be very proud to continue driving positive change in small and medium-sized enterprises".
Ricardo Mange Aguayo, Head of SME Banking at BBVA Mexico, commented: "The bank's lending process accommodates this agreement and enables us to offer terms that suit the agribusiness sector's specific features, while helping companies transition to sustainable production systems.” To offer effective coverage, BBVA Mexico has developed a specialized structure and a robust array of credit solutions to support the agribusiness, packaging and food marketing activities.
The goal is to support the Mexican farming sector with a special focus on the wellbeing of society
The signing of this partnership agreement demonstrates both companies' commitment to promote the Mexican farming sector and to support small and medium-sized companies that work every day to fulfill their engagements while respecting the environment and their responsibility to society.
The initial “Crediproveedores” arrangement with Nestlé was signed in July of last year. To date, 3,000 million pesos have been mobilized through a factoring line.
In the sustainability space, BBVA is committed to mobilizing €300 billion from 2018 to 2025. As of September 2023, €185 billion has already been achieved. Nearly 77 percent has been allocated to the fight against climate change and 23 percent to promoting inclusive growth.