Spanish bank BBVA has issued a €1bn green bond, the largest sustainable debt instrument made by a financial institution in the eurozone.
BBVA’s green bond is a non-preferential senior debt issue with a duration of seven years, making BBVA the first banking group in Spain to issue one of this kind.
In the first three hours since the green bond’s issuance the order book exceeded €3bn, which allowed to lower its price from “midswap” plus 95 basis points to “midswap” plus 80 basis points.
BBVA’s first green bond comes just a few days after the company published its framework for issuing sustainable bonds which, – linked to the United Nations Sustainable Development Goals – aims at responding to investors interested in fighting climate change.
With this type of emissions, the bank channels funds to finance projects in sectors such as renewable energy, energy efficiency, waste management, water treatment or access to essential needs and services such as housing or inclusive finance.
This bond is part of the entity’s strategy of climate change and sustainable development, through which BBVA will mobilize €100bn in green financing, sustainable infrastructures, social entrepreneurship and financial inclusion, by 2025.