BBVA advised Hyundai Capital Services on its first overseas green loan

BBVA and Hyundai Capital Services (“HCS”) signed a EUR 100 million green term loan, the first green loan ever arranged by BBVA for a Korean company. 

BBVA and Hyundai Capital Services (“HCS”) signed a EUR 100 million green term loan, the first green loan ever arranged by BBVA for a Korean company. This is also HCS’s first overseas green loan. While HCS issued several green bonds and domestic green loans in the past, this is the first time that the company uses the green loan instrument for overseas loans to support its environmentally-friendly automobile business.  

The proceeds of the loan will be used by HCS to provide its customers with financial services for the purchase, leasing and trading of eligible electric, hydrogen or hybrid vehicles, in compliance with the Green Loan Principles.

“We are honored to have partnered with HCS on its green loan. Being the first green loan arranged by BBVA for our Korean clients, it is a step further for the bank in the field of sustainable finance in Asia,” said Pep Ferrís, Head of BBVA Corporate and Investment Banking Asia. “This green loan highlights once again Hyundai’s commitment towards leading the auto sector to a more sustainable future. BBVA is proud to support this endeavor.” 

HCS is the financial services arm of Hyundai Motor Group, which is South Korea’s largest car manufacturer and the third largest in the world. As part of its sustainable finance journey, HCS established a Sustainable Financing Framework in 2020 to ensure transparent and continuous tracking and management of project selection procedures, evaluation, use of proceeds and follow-up reports.