05 June 2024
BBVA and Cementos Avellaneda formalize a ESG KPI-Linked loan for 10,350 million pesos
The funds will be specifically targeted for capital investments that meet sustainability goals (ESG).
BBVA granted sustainable financing amounting to 10,350 million pesos to Cementos Avellaneda, linked to key sustainable performance indicators ("ESG KPI-Linked"). These funds are specifically targeted at capital investments that meet sustainability (ESG) goals. The cement company commits to reducing net CO2 emissions and increasing thermal substitution in Clinker kilns through alternative fuels, in the 2024-2027 period.
"BBVA is proud to be able to support Cementos Avellaneda with sustainable finance because the company is highly committed to caring for the environment. We are pioneers in granting KPI-linked loans by linking the loan's interest rate to compliance with sustainable indicators. With this type of ESG structure financing, we promote the decarbonization of production processes with the aim of assisting our clients in their transition to a greener and more sustainable world," said Verónica Incera, Head of Corporate & Investment Banking at BBVA in Argentina.
"Our commitment to caring for the environment and the sustainability of our operations is intrinsically linked to our activity model, and our commitment to managing and carrying out our industrial operations sustainably, in line with the Sustainable Development Goals promoted by the UN. Receiving this type of loan linked to sustainability goals once again reaffirms our commitments in this area, helping us to finance projects from our sustainability roadmap," said Rodrigo Menéndez, Director of Finance and Administration at Cementos Avellaneda S.A.
Sustainability-Linked Loans are any type of loan instrument that incentivizes the borrower to achieve material, quantitative, predetermined, ambitious, regularly monitored, and externally verified sustainability goals (ESG). Therefore, borrowers explicitly commit to future improvements in their sustainability performance within a predefined timeframe.
ESG KPI-Linked loans are certified in BBVA's Sustainable Transactional Banking Framework and aligned with the Sustainability Linked Loan Principles (SLLPs), established by the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA) and Asia Pacific Loan Market Association (APLMA).
BBVA stays by its clients side on their path to sustainability
BBVA aims to assist and help its clients move toward a more sustainable world. To this end, it has placed sustainability at the heart of its business, as one of its six strategic priorities to address three major challenges: fight climate change, conserve natural capital and promote inclusive growth.
BBVA has a target of mobilizing 300 billion euros in green financing, sustainable infrastructure and agribusiness, entrepreneurship and financial inclusion, during the 2018-2025 period.