Green and Sustainability-Linked Loan
September 2024
The sustainable loan market reached EUR 453Bn globally in H1 2024, up 28% from H2 2023 and 10% from H1 2023. While Q1 2024 had the highest first-quarter volume since the sustainable loan market began in 2017, Q2 2024 saw a decline to EUR 195Bn, down 24%fromQ1 2024 and 18%fromQ2 2023. In contrast, overall global loan volumes rose by 15%fromQ1 2024 and 21%fromQ2 2023.
Sustainability-linked loans continued to dominate the market, making up EUR 144Bn or 74% of the total sustainable loan volume. Despite this, both sustainability-linked and green loans experienced significant declines in Q2 2024 with volumes dropping by double digits compared to both Q1 2024 and Q2 2023.
Regionally, EMEA led in Q2 2024 with a total volume of EUR 93Bn, followed by the Americas at EUR 72Bn and APAC at EUR 28Bn. While APAC’s sustainable loan volume increased by 20% compared to Q2 2023, EMEA and the Americas saw substantial declines of 21% and 24%, respectively, after a strong Q1 2024. Together, EMEA and the Americas accounted for 84% of the global sustainable loan volume in Q2 2024.
Highlights of 2Q2024
Anti-Greenwashing Regulations on the Horizon
Contributing to the ongoing development of regulations, evolving standards, and recommendations within the sustainability space, the UK's FCA introduced its anti-greenwashing rule, effective as of 31st May. This follows a similar EU directive on empowering consumers passed earlier in the year, while Canada is also in the process of passing new regulations on the matter.
Sustainability-linked Loan Market
Labeling sustainability-linked financing granted to high emission companies and sectors has certainly become more scrutinized, raising concerns over the materiality of the KPIs and the ambition of the SPTs.
BBVA Top Deals – 2Q2024
TOP DEALS
Inmobiliaria Colonial, Socimi, S.A.,
Spain (BBB+/-/-),
EUR 1 Bn
KPI linked provision.
[BBVA, Sustainability Coordinator]
CEMEX, S.A.B. de C.V.,
Mexico (BBB-/-/BBB-),
EUR 750 Mn
KPI linked provision.
[BBVA, Sustainability Coordinator]
DeAcero,
Mexico (Unrated),
USD 200 Mn
KPI linked provision.
[BBVA, Sustainability Coordinator]
Project 3-Pack
(Daybreak & Ranger), USA,
USD 2,310 Mn
Green Loan
[BBVA, Green Loan Coordinator]
Tages Net Zero,
Italy,
EUR 620 Mn
Green Loan
[BBVA, Green Loan Coordinator]
Sonnedix Kandle,
Italy,
EUR 258 Mn
Green Loan
[BBVA, Green Loan Coordinator]
Sustainable loan volumes per geography
Sustainable loan volumes per type of instrument
Selected Sustainable Loans – 2Q2024
Disclaimer
This document is provided with an informative purpose, having the information contained herein merely the character of an example. Such information does not constitute an offer to finance or to purchase or sell securities or any specific tax, legal, environmental, social, accounting or regulatory advice or recommendation of whatever form. Clients should independently evaluate the financial, environmental, social, market, legal, regulatory, credit, tax and accounting risks and consequences and should not rely on Banco Bilbao Vizcaya Argentaria, S.A., or any of its Group entities (hereinafter “BBVA”) for this.
The information contained herein is information available from public sources. Information on ESG trends is based on BBVA’s understanding of certain current market practices, which may differ among markets and over time and/or may be amended or replaced by legally binding regulations. Notwithstanding the fact that reasonable measures to assure that the information contained herein is not mistaken or misleading, BBVA does not represent or warrant, either express or implicit, its accuracy, integrity or correctness and therefore no party should rely on it. BBVA accepts no liability for any mistake or omission in the information nor any obligation to communicate any changes to this document or to update its contents.Clients should voluntarily and independently assess any information contained herein and are solely responsible for relying on it and for the decision to execute a particular transaction and for complying with recognized markets standards, any applicable laws, regulations and obligations to that effect.
Consequently, neither BBVA nor any of its officers, directors or employees accept any responsibility or obligation nor will have any liability whatsoever for any loss, damage or claim of any kind, arising from or in relation to the information provided by BBVA or any action taken in reliance thereon, in or from any jurisdiction, including but not limited to the present or future consideration of any transaction as sustainable.
This document is property of BBVA. Any denominations, designs, and logos are registered trademarks of BBVA. The information contained herein is provided to you by BBVA on a strictly confidential basis. No part of this document may be copied, conveyed, distributed or furnished to any person or entity without the consent of BBVA. Specifically, no part of this document may be copied, conveyed or distributed into the United States of America or furnished to any person or entity in the United States or any US person. Failure to comply with these restrictions may breach the laws of the US. It is understood that its recipients accept all of the warnings and conditions contained herein in its integrity.
This document has not been drafted according to the rules in place for the independence of investment reports, thus it does not contain objective explanations, nor has it been independently verified.
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This document is provided with an informative purpose, having the information contained herein merely the character of an example. Such information does not constitute an offer to finance or to purchase or sell securities or any specific tax, legal, environmental, social, accounting or regulatory advice or recommendation of whatever form. Clients should independently evaluate the financial, environmental, social, market, legal, regulatory, credit, tax and accounting risks and consequences and should not rely on Banco Bilbao Vizcaya Argentaria, S.A., or any of its Group entities (hereinafter “BBVA”) for this.
The information contained herein is information available from public sources. Information on ESG trends is based on BBVA’s understanding of certain current market practices, which may differ among markets and over time and/or may be amended or replaced by legally binding regulations. Notwithstanding the fact that reasonable measures to assure that the information contained herein is not mistaken or misleading, BBVA does not represent or warrant, either express or implicit, its accuracy, integrity or correctness and therefore no party should rely on it. BBVA accepts no liability for any mistake or omission in the information nor any obligation to communicate any changes to this document or to update its contents.
Clients should voluntarily and independently assess any information contained herein and are solely responsible for relying on it and for the decision to execute a particular transaction and for complying with recognised markets standards, any applicable laws, regulations and obligations to that effect.
Consequently, neither BBVA nor any of its officers, directors or employees accept any responsibility or obligation nor will have any liability whatsoever for any loss, damage or claim of any kind, arising from or in relation to the information provided by BBVA or any action taken in reliance thereon, in or from any jurisdiction, including but not limited to the present or future consideration of any transaction as sustainable.
This document is property of BBVA. Any denominations, designs, and logos are registered trademarks of BBVA. The information contained herein is provided to you by BBVA on a strictly confidential basis. No part of this document may be copied, conveyed, distributed or furnished to any person or entity without the consent of BBVA. Specifically, no part of this document may be copied, conveyed or distributed into the United States of America or furnished to any person or entity in the United States or any US person. Failure to comply with these restrictions may breach the laws of the US. It is understood that its recipients accept all of the warnings and conditions contained herein in its integrity.
This document has not been drafted according to the rules in place for the independence of investment reports, thus it does not contain objective explanations, nor has it been independently verified.