BBVA - 35M EUR Token

Overview

BBVA Group issued the first structured green bond using blockchain technology to negotiate the terms and conditions. It is a private placement in which MAPFRE invested €35 million six year term bond linked to the evolution of the five year euro swap rate. Structured bonds are negotiable assets with a fixed maturity and a return that can be based on interest rates, shares, an index, or an exchange rate. Furthermore, this kind of product is designed according to the required rate of return, terms, and risk tolerance of the investor, in this case MAPFRE.

Issuer(s): BBVA
Date: 2/19/2019
Country: Spain
Size (Native Currency): 35M EUR
Size (USD): $37,492,350
Length: 6 Years

This deal is particularly groundbreaking given its dual nature: it is both sustainable and high-tech. On one hand, the funds are earmarked to finance green projects within the BBVA’s framework of the Sustainable Development Goals (SDGs). As such, the bond has been categorized as green, according to the Second Party Opinion issued by DNV GL - a global leader in certification. On the other, the terms of the bond were negotiated on BBVA's internally developed blockchain platform