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06 October 2021

BBVA Mexico extends a USD30 million green credit to Kiwapower

  • The loan is a sustainability-linked revolving working capital loan that will finance 100 photovoltaic stations of 500 kW each. Kiwapower is an independent energy producer focused on onsite generation for industry and retailing in Mexico.
  • So far this is the largest transaction of its type and will facilitate the deployment of photovoltaic systems to Kiwapower clients, accelerating the transition to clean energies in Mexico.
  • The loan is consistent with UN Sustainable Development Goals (SDG) 7 and 13, which refer to affordable, clean energy and climate action.

BBVA México extended a USD30 million “green loan” to Grupo Kiwapower, a three-year revolving credit facility that will finance 100 photovoltaic systems of up to 500 kW each.

Álvaro Vaqueiro Ussel, head of Corporate and Investment Banking at BBVA Mexico, remarked: “This is so far the largest transaction of its kind. At BBVA México we continue to work with our clients toward the sustainable transition of their companies. Today, more than ever, we all need to work together to combat environmental problems in this country and around the world.”

Keisuke Moriyama, CEO of Grupo Kiwapower, commented: “Kiwapower benefits from a capital commitment from the Japanese company Marubeni Corporation. The deal with BBVA Mexico allows us to access a local source in dollars, which will add to our program of currency management, allowing for even more competitive solar energy rates for our clients.”

With the installation of these 100 solar stations, each will contribute at least 79,636 m3 of water savings per year and reduce CO2 generation by 44,177 metric tons a year, equivalent to what is taken up by 736,280 trees. The company also supports UN Sustainable Development Goals (SDG) 7 and 13, which refer to affordable, clean energy and climate action, respectively.

Kiwapower has the backing and experience of its shareholders: the Japanese trading company Marubeni, founded in 1858 and ranked among the top 200 of Fortune’s Global 500; and Becquerel Capital, a company that specializes in the structuring and development of sustainable electrical energy, based in Mexico City since 2013.

Kiwapower supplies solar energy through photovoltaic energy systems located in clients’ facilities—industrial and retail concerns in Mexico—through a solar energy supply contract with a predictable, transparent, long-term electrical rate, generating savings from day one. Under this system, Kiwapower handles the design, installation, supervision, management and operation of the systems. No investment is required of clients, making this the most reliable and convenient way to power a company with solar energy.

BBVA México, through its transactional bank, launched the Japan Desk in 2019, an area specialized in the Japanese market. Since its creation, it has helped strengthen relations between the bank and Japanese companies and attract new clients. There are currently more than 1,000 Japanese companies established in Mexico.

Grupo Financiero BBVA Mexico is a benchmark in sustainable finance, and its firm commitment to the battle against climate change is evident in the 200 billion euros it will place in sustainable financing through 2025. This is double the initial goal of 100 billion originally announced in February 2018.

  Spanish version here