Spanish banking group BBVA has issued its first structured green bond using blockchain in a private placement to Mapfre.
Mapfre has invested €35m six year term bond linked to the evolution of the five year euro swap rate in a product that has been designed according to the required rate of return, terms, and risk tolerance of the investor, "in this case of Mapfre,"says BBVA.
Structured bonds are negotiable assets with a fixed maturity and a return that can be based on interest rates, shares, an index, or an exchange rate.
Juan Garat, BBVA's head of global sales said: "With this deal, BBVA reasserts its firm commitment to both sustainable financing and new technologies. Using DLT - distributed ledger technology - for this transaction allowed us to simplify the processes and streamline the negotiation time frames, which is in line with our pursuit of excellence in customer service".
José Luis Jiménez, chief investment officer at Mapfre, added: "This bond contributes to the diversification of Mapfre's investment portfolio, and it does so with an innovative and sustainable product - two qualities that fully align with the company's investment policy."