BBVA mobilizes €20 billion in sustainable business in the first quarter of 2024 (+41 percent)
BBVA mobilized €20 billion in sustainable business in the first quarter of 2024, up 41 percent on the same period last year. The bank is now ahead of the curve in achieving its goal of mobilizing €300 billion between 2018 and 2025, having already reached €226 billion. Of this figure, 77 percent will go toward combating climate change and 23 percent to promoting inclusive growth.
Between January and March, the Businesses line was successful in mobilizing a total of €7 billion. During this period, BBVA continued to advise its business customers on sustainable solutions that will allow for potential economic savings, focusing on energy efficiency, renewal of vehicle fleets and water consumption. Notably, roughly €700 million in funding was channeled into agribusiness, water and circular economy, up 258 percent year on year. Mexico made an immense contribution in this regard, accounting for around half of this figure.
Meanwhile, the retail business mobilized €2.6 billion. During the quarter, BBVA continued to promote bespoke digital solutions aimed at the mass consumer market, offering retail customers a vision of the potential savings they can obtain by embracing energy-saving measures at home and while out and about. Of particular note was the €124 million set aside to help finance the acquisition of hybrid or electric vehicles, representing growth of 136 percent compared to the same period of the previous year.
Corporate and Investment Banking (CIB) channeled around €10.4 billion over the first quarter of 2024. All products performed well, including both long- and short-term financing and the brokerage of green, social and sustainable bonds and bonds linked to environmental and/or social indicators, in which BBVA acts as bookrunner. During the quarter, the bank continued to promote cleantech financing in the wholesale segment, as well as renewable energy projects and reverse factoring linked to sustainability, among other strategic pursuits. A further highlight was the financing of renewable energy projects, which contributed around €800 million during the first quarter, more than double the figure reported in the same period of 2023.
In March 2024, BBVA issued a senior preferred green bond worth €1 billion, maturing in seven years and at a price set at the mid-swap plus 90 basis points. For this new issue, projects financed over the six months prior to the bond issue have been identified and sorted into two eligible categories according to BBVA’s own Sustainable Debt Financing Framework: renewable energy and clean transportation.
Also in March, BBVA published its fifth TCFD (Task Force on Climate-related Financial Disclosures) report, which outlines its strategy for managing risks and opportunities related to climate change, as well as the steps it is taking in this direction. The Group has continued to incorporate the elements of a Transition Plan by applying the guidelines and recommendations for financial institutions released by GFANZ (Glasgow Financial Alliance for Net Zero) in November 2022.
The amount of sustainable business channeled includes financing, brokerage, investment, off-balance sheet and insurance transactions. As these transactions come with contractual maturity or repayment dates, the cumulative amount does not represent the amount recognized in the balance sheet.
