BBVA sign a €300 million sustainable revolving credit facility with EDF

Multinational Spanish banking group BBVA and the French electricity company EDF have signed a €300 million sustainability-linked revolving credit facility (RCF).

The loan incorporates a pricing adjustment mechanism that is linked to EDF’s sustainability performance indicators. The margin is linked to EDF’s three major ‘KPIs’: direct CO2 emissions, the electrification of its vehicle fleet and customers’ use of online consumption monitoring tools.

This is BBVA’s first sustainable loan with a French company and a big step in the field of sustainable finance. France is often argued to be at the forefront of sustainable finance in Europe with its large corporates showing increasing interest in sustainable finance solutions of this type, within the credit market.

In February 2018, BBVA announced its Pledge 2025, a strategy to combat climate change and promote sustainable development. The bank has committed to mobilize 100 billion from now until 2025 in green financing, sustainable infrastructure, social entrepreneurship and financial inclusion. The entity believes it has ‘the capacity knowledge and experience to provide its clients superior advisory services for sustainable financial solutions.’

Hedi Ben Salem, Head of Corporate Loans Europe & Asia, comments on the transition: “It not only strengthens our relationship with EDF but also consolidates our position as a leading structuring bank of sustainable finance solutions in the European loan market.”

The EDF group describes itself as ‘the European leader in renewable energies’. In 2018 it generated consolidated sales of €69billion supplying energy and services to an estimated 39.8million customers, 90% of which are in France. As part of its new strategy: CAP 2030, the EDF Group have set an ambitious goal of doubling the Group’s net installed power in the field of renewable energies. The CAP 2030 underpins the Group’s goal of being an efficient, responsible electricity company that champions low-carbon growth.  

In response to the BBVA signing Xavier Girre, Senior Executive Vice-President, Group Finance, states: “This third ESG-Indexed RCF brings to almost 4.5 billion euros the total amount of sustainability-linked credit facilities for the EDF Group. It confirms that sustainable finance instruments are core to EDF’s financing strategy.”

Photograph: Pe_Wu