GTB Distribution & Portfolio Solutions, a strategic initiative to help our clients to reach further

The distribution of trade assets is not new to the industry, yet the changing regulatory environment and the pace of technological advancement has accelerated many banks' decision to embrace an Originate to Distribute (OtD) model. This shift has not gone unnoticed at BBVA, yet within Global Transaction Banking (GTB) we want to create a distribution brand that is recognisable and will ensure consistency, longevity, and transparency for our clients and partners.

What is asset distribution?

Distribution is essentially a tool for the management of capital and credit limits which allows a bank to seek efficiencies by leveraging secondary market appetite for assets, be it from banks, insurance companies, multilateral institutions or institutional investors. By distributing or mitigating risk, the bank can tap into valuable sources of liquidity and market capacity, but it can also be a wider tool to foster partnerships and make the bank more relevant to its clients.

GTB distribution growth plans

GTB has ambitious growth plans, which are centred on i) the client, ii) specialisation and iii) new product innovation, and distribution is set to play a key role in the overall strategy. The OtD transformation requires a change in mindset whilst retaining a “client first” focus, and within GTB Distribution we prefer to view it as ‘distribute to originate’ - meaning:

How can we use distribution to make us more relevant to the client and become a reliable and sustainable long term partner, ever ready to consider your next financing?

By engaging with our specialist trade sales, product and solutions teams we can now offer multi-investor solutions to clients which otherwise would not have been possible. It allows the Bank to bid for lead roles in transactions, have an appetite for larger ticket sizes, be more ambitious in our risk analysis and be able to structure more complex deals to meet client needs.

Strategic alliances with investors: a key value in asset distribution

As well as delivering a distribution capability to support our origination with clients, we pride ourselves in establishing and sustaining partnerships with the investor market, who may themselves be a client of the bank but also a strategic relationship partner to the client itself. Working together with the client, BBVA GTB can deliver a tailor-made distribution strategy that best suit their needs, be it relationship driven, pricing driven or looking for additional pockets of liquidity.

Global capabilities and product diversification in GTB distribution

GTB Distribution is a centralised function, with global reach to our entire footprint, and with a proven track record. In 2024 we supported our teams in multiple booking locations (including New York, Mexico, London, Madrid, Continental Europe and Hong Kong) and we distributed a diversified number of products, from plain vanilla LCs and loans to receivables structures like RPPs and mass receivables, to more structured products like borrowing base and prepayments, demonstrating the sophistication and capabilities of the team.

With enhanced data and portfolio analytics we can more proactively identify and offer solutions which bring capacity and liquidity to support deal origination. The age of digitisation of trade assets is upon us, and banks are positioning themselves to ensure they remain relevant as both an originator and distributor of trade assets, leveraging on technology to stay ahead of the game. With BBVA’s partnership, you can trust us to provide both agility and best in class solutions in servicing your global trade finance requirements.