08 July 2024

BBVA acts as Global and Sustainability Coordinator for EnBW’s core bank financing for the second consecutive time

As joint global and sustainability coordinator, BBVA has advised EnBW -one of the largest integrated energy companies in Europe- on the structuring and syndication of its core bank financing. This new EUR 2bn sustainability-linked revolving credit facility replaces an existing EUR 1.5Bn loan, already linked to sustainability targets, which the company closed in June 2020. 

The tenor of the new facility is initially 5 years, with two 1-year extension options. A total of 21 banks ultimately joined in. BBVA was one of the four Global Coordinators appointed for the transaction, with two of these banks, including BBVA, acting as sustainability coordinators.

As with the existing loan, the margin of the new facility will be linked to EnBW’s performance against ambitious annual targets for each of the selected KPIs. However, with the full support of the sustainability coordinators, the group decided to replace the KPIs of the existing syndicated loan facility with three new ones that are not only highly relevant to the company but also material to the industry:  scope 1 & 2 emission reduction; scope 3 emission reduction; and minimum EU taxonomy-aligned capex.  

These new KPIs underscore EnBW’s ambitious CO₂ emission reduction targets and investments aligned with the European Union's environmental objectives. They demonstrate the company's strong commitment to the energy transition and sustainable development. Furthermore, these indicators support universal goals, such as the United Nations Sustainable Development Goals: Goal 7 (Affordable and Clean Energy), Goal 9 (Industry, Innovation, and Infrastructure), Goal 11 (Sustainable Cities and Communities), Goal 12 (Responsible Consumption and Production), and Goal 13 (Climate Action).

BBVA’s Global Head of Corporate Lending, Jorge Gonzalez Jacob commented: “We are deeply honoured to have a company such as EnBW, with a strong commitment to sustainability, among our clients. The ambitious sustainability targets the group has set make it one of the leaders in its industry in the transition to a net-zero carbon world. It has been a privilege to once again assist one of our core clients, as sustainability coordinator, in establishing a financing structure that emphasises these important sustainability goals.”

EnBW’s SVP Finance, M&A and Investor Relations Marcel Münch said: “Being pioneers in sustainability, BBVA has played a decisive role in the coordination of EnBW’s new sustainability-linked syndicated loan facility. BBVA actively supports the transition of its clients to a sustainable future. This is perfectly in line with EnBW’s sustainability-oriented corporate strategy and clear decarbonization path. Sustainability is also at the core of our financing strategy which enables our transformation on the way to a climate-neutral energy system.”

This new Global and Sustainability Coordinator mandate strengthens BBVA's presence in the Western European syndicated loan market and underscores its ability to provide its core clients with top-tier arrangement services.