Cerrar panel

28 September 2022

BBVA grants sustainable working capital loan facility to Ant Group to fund green and social good initiatives

BBVA has granted a sustainable working capital loan facility to the global technology provider Ant Group to partially fund the company’s investment in green and social good initiatives. 


 

According to the terms, the working capital loan facility will be used in its entirety to support tangible and impactful environmental and social projects. BBVA will oversee the use of the loan proceeds, focusing on project evaluation and selection, ensuring review and reporting for adherence to the Loan Market Association (LMA) standards, and benchmarking against 17 of the UN Sustainable Development Goals (UN SDGs).

Earlier in the year, a number of Chinese and overseas financial institutions were in touch with the company to discuss green financing collaborations. “We are proud to partner with leading financial institutions such as BBVA and explore innovative financing solutions to advance our green and social good initiatives,” said Liang CAO, Group Treasurer at Ant Group. “Green financing will play an important role in accelerating sustainable growth for the technology sector.”

Liang CAO, Ant Group:

"Green financing will play an important role in accelerating sustainable growth for the technology sector"

Pablo Riquelme, Head of BBVA Corporate & Investment Banking in Asia, explains: “Following the Chinese Government’s 30-60 plan, many Chinese companies are in the process of transitioning. It’s great that industry leaders such as Ant Group, that have a major impact on society and big influence globally, are leading the way in the sustainable transition. BBVA, as an advanced financial institution in ESG, is ready to help companies, no matter what stage they are at, to achieve the true transformation in their business model.

Pablo Riquelme, Head of BBVA CIB in Asia:

"BBVA is ready to help companies to achieve the true transformation in their business model"

BBVA’s partnership with Ant Group came after the company achieved a number of major milestones in its sustainable growth. In June 2022, Ant Group announced its ESG strategy in the Company’s sustainability report, which focuses around four pillars: digital inclusion, green and low-carbon development, technological innovation and open ecosystem. In May 2022, Ant Group secured an Sustainability-linked loan, the first of its kind in China’s technology sector. In April 2022, Ant Group announced that it has achieved carbon neutrality in its own operations since 2021, and is well under way to reach net zero in all carbon emissions throughout the Company’s value chain by 2030. And finally, in the same month, Ant Group joined the Low Carbon Patent Pledge and made its green computing patents free for low carbon innovators around the world.

Likewise, as a demonstration of its responsibility in the fight against climate change, BBVA approved in 2018 its 2025 Goal, whereby it committed 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 figure of 59 billion euros, the bank raised its target to 200 billion euros. At the end of June 2022, BBVA had already reached around 112 billion euros.

About Ant Group

Ant Group aims to create the infrastructure and platform to support the digital transformation of the service industry. It strives to enable all consumers and small and micro businesses to have equal access to financial and other services that are inclusive, green and sustainable.