BBVA, sustainability coordinator of A2A’s syndicated RCF in Italy for the second time

BBVA reaffirms its leadership in sustainable finance with the structuring and execution of a new revolving credit facility for the Italian multi-utility A2A. For the first time in Italy, a utility company linked the margin of its loan to social KPIs only, thus highlighting its commitment to all aspects of sustainability.

Following the successful closing of its inaugural sustainability-linked RCF in 2018, A2A mandated once again BBVA to act as sustainability coordinator for the company’s new financing. The EUR 410 million revolving credit facility which involves a total of 6 lenders, has a 3-year tenor. Its margin is pegged to three social KPIs: frequency index, gender pay gap and the percentage of the order to suppliers evaluated with an ESG indicator (Infoprovider Ecovadis). Annual compliance targets have been set for all three indicators. Depending on whether or not they are met, the financial terms will vary.

The selection of these sustainability indicators demonstrate that A2A continues to progress in its sustainability journey and aims at improving all aspects of its sustainability performance. While, in its other sustainability-linked facilities, the company focuses on energy and circular economy, the new sustainable loan emphasizes its effort to improve its social impact, in line with the group’s new 2021-2030 Strategic Plan.

Hedi Ben Salem, Head of Corporate Lending Europe & Asia at BBVA, said: “A2A is a strategic partner of BBVA. It has sustainability in its DNA. So do we. We are proud of having been part of the group’s sustainable journey since 2018. We have witnessed its achievements over the past years. More recently, we have been given once again the opportunity to assist in the design of a new and innovative sustainability-linked loan, which this time highlights A2A’s commitment to improving its social impact.”

BBVA, a leader in sustainable finance

As a demonstration of its responsibility in the fight against climate change, BBVA approved its 2025 Pledge in 2018, pledging to mobilize a total of €100 billion in green finance, sustainable infrastructure, social entrepreneurship and financial inclusion. Three years later, and after having managed to reach the €59 billion figure, the bank has increased its target to €200 billion. By December 2021 it had reached around €86 billion.

In the sustainable loan market, BBVA has been a pioneer and key driver, which has positioned it today as one of the most active banks globally. In 2021 the bank participated in 103 green and sustainable facilities, among which it led a total of 28 syndicated loans as sustainability coordinator and arranged 22 bilateral transactions globally for clients from various sectors. This includes benchmark transactions in Spain, United Kingdom, Germany, United States, Mexico and Latin America.