BBVA signs its first sustainability-linked loan in Austria with Porsche Holding Salzburg

BBVA signs with Porsche Holding Salzburg a €200 million sustainability-linked loan. This new facility highlights the auto company’s commitment to sustainability as well as the environmental, social and governance objectives set out in its sustainability plan.

BBVA reached another milestone in the sustainable finance field by arranging its first sustainable loan for an Austrian company. BBVA signed a €200 million sustainability-linked loan for a tenor of three years with Porsche Holding Salzburg, the largest automotive trading company in Europe and a subsidiary of the Volkswagen Group. This is also the first sustainable facility that BBVA closes with Porsche Holding Salzburg after having arranged back in 2018 the first non-Spanish loan using blockchain technology for the negotiation and closing of a loan.

The new term loan includes a pricing adjustment mechanism that links its margin to two environmental KPIs and a social one: CO2 emissions, share of battery electric vehicles sold and women in management. The selected indicators are aligned with the United Nations’ Sustainable Development Goals and more particularly with SDG 13 to adopt urgent measures to combat climate change and its effects, and SDG 5 to achieve gender equality and empower women.

The selected KPIs also highlight the commitment of the company to sustainability since they are aligned with Porsche Holding’s long-term objectives published in its Sustainability Report. Sustainable mobility for everyone -  in good quality, at affordable and fair prices, and available at all times - is what Porsche Holding Salzburg aims to achieve.

Markus Bechtel, senior banker at BBVA, explains: “It is crucial for companies not only to be committed to sustainability but also to incorporate sustainability objectives in their financing instruments. This will help society fight against climate change and foster best practices. BBVA actively promotes sustainable finance and we are proud of having worked hand in hand with Porsche Holding Salzburg on such financing.”

Thomas Mairer, Group Treasurer, Porsche Holding Salzburg: “We are very pleased to have closed this transaction with BBVA, which reflects our strong commitment to sustainability and social responsibility. As an automotive trading company, we are aware of the impact of our activities on the environment and society and we want to contribute positively to the transition towards a low-carbon and inclusive economy. This loan is an incentive for us to continue improving our performance in the selected KPIs and to align our financing strategy with our long-term sustainability goals”.