The European Investment Bank (EIB) and BBVA have signed two agreements aimed at expanding green finance and strengthening climate advisory support.
Under the first agreement, the EIB will provide a guarantee facility of up to €380 million ($451 million) to support sustainable projects. The bank will guarantee around 50% of a portfolio of up to €760 million ($903 million), while BBVA will originate a new portfolio of eligible green projects equivalent to 100% of the maximum guaranteed amount. Beneficiaries are expected to include individuals, homeowner associations, small and medium-sized enterprises (SMEs) and real estate developers.
The transaction is structured as a significant risk transfer (SRT) operation, enabling BBVA to free up regulatory capital as part of its capital optimisation strategy.
Jean-Christophe Laloux, Director General and Head of Lending and Advisory within the EU at the EIB, said: “These agreements mark a further key milestone in EU climate financing with a leading banking partner in Spain, and underline our commitment to support more sustainable housing solutions that deliver both environmental and social impact. We will complement this with advisory support to help identify new financing solutions to deliver even more impact on the ground with our financing.”
Iván Poza, Head of Public Institutions and Sovereign Wealth Funds at BBVA CIB, said: “This agreement we are signing with the European Investment Bank allows us to boost lending to support small and medium sized enterprises in their adaptation to climate change. For BBVA, it is a highly relevant agreement because it encompasses three of the Group’s strategic priorities: driving sustainability as a growth engine, expanding in the business segment and optimising capital.”
The second agreement covers advisory services to be delivered under the InvestEU Advisory Hub. The EIB will support BBVA in strengthening its climate action and environmental sustainability capabilities, including project origination, eligibility assessment, product development and impact reporting, with a focus on the real estate and infrastructure sectors. Guidance will also be provided on financing and grant schemes, including the interaction between public support, EIB instruments and other risk mitigation tools.
Antoni Ballabriga, Global Director of Sustainability Intelligence at BBVA, stated: “The EIB will provide us with advisory services that will allow us to continue advancing our climate strategy and our goal of accelerating sustainability as a growth engine and, through it, accompanying our clients and fostering new business opportunities.”
The agreements were announced during the Green Gateway event in Luxembourg, organised by the EIB Group with financial support from the European Commission’s InvestEU Advisory Hub. The event brought together more than 200 participants, including partner banks and other stakeholders, to discuss developments in the EIB Group’s green intermediated finance and advisory activities.
