Latin America's best bank for sustainable finance 2020: BBVA
Awards for Excellence 2020
In the green bond market, BBVA worked on November’s Ps2.5 billion ($108 million) green bond for Fideicomisos Instituidos en Relación con la Agricultura. The proceeds of the deal are being used for protected agriculture, efficient water use projects and project development of renewable energies.
BBVA also brought Banobras’ Ps$10 billion multi-tranche bond to market – two tranches of which were certified sustainable.
In 2018, BBVA Global Transaction Banking broke ground with its innovative sustainable transaction banking framework, which last year was expanded to include sustainability linked products. That paved the way for the bank to sign a Ps140 billion social loan with Nestlé to support SMEs in the agricultural sector – the first in Colombia.
During 2019, the BBVA Microfinance Foundation (BBVAMF) supported more than 2.2 million low-income entrepreneurs in Colombia, Peru, Dominican Republic, Chile and Panama, offering financial services, advice and skills training.
The foundation is committed to measuring impacts, and the results show the success of its initiatives. Clients’ earnings on average increase annually by 17%, their assets by 24% and the portion of clients under the poverty line has declined 34% just in two years.
Since its creation in 2007, BBVAMF has originated more than $14.1 billion in loans to low-income entrepreneurs. It has been acknowledged by the OECD as the second main philanthropic provider for development in gross disbursements, and it received the Corporate Citizen of the Americas award from the Trust for the Americas of the Organization of American States.
In financial inclusion in Mexico, work is underway to promote banking penetration among beneficiaries of family remittances and to digitalize the segment.
“We expect that our work will contribute to the Mexican National Financial Inclusion Plan and the country’s commitment to financial inclusion,” says Lidia del Pozo, head of community investment programmes at BBVA.
BBVA’s global head of responsible business, Antoni Ballabriga, is also co-chair of the United Nations Environment Programme – Finance Initiative global steering committee.