BBVA and Isagen Pioneer Sustainable Finance with $21 Billion Linked to Environmental Goals
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BBVA in Colombia has reached an agreement with Isagen to convert long-term finance of 368 billion pesos to sustainable loans linked to compliance with an environmental indicator. The index measures carbon emissions intensity in relation to energy generation as part of a pledge made by the power generation company to help preserve a more sustainable world.
Isagen operates power plants with close to 3,000 megawatts (MW) of net effective capacity, accounting for almost 16 percent of Colombia’s energy system. The use of renewable sources reflects the company’s commitment to diversifying its energy portfolio through initiatives such as the wind and solar farms developed in 2022 and already in operation.
The sustainable finance granted by BBVA in Colombia supports Isagen’s strategic objectives, aimed at helping to preserve the environment and reduce the impact of climate change, while mitigating and offsetting carbon dioxide emissions from its power plants.
Through its Management Report and a Sustainability Indicator Compliance Monitoring Report, the energy company must annually provide information on compliance with the indicator in order to confirm the effectiveness of its progress toward sustainable practices.
The sustainable finance was approved by Valora, a leading sustainability assessment agency, which endorsed the alignment of the indicator with the Sustainability Linked Lending Principles (SLLP).
This new sustainable loan ratifies BBVA’s commitment to increase its green portfolio by 40 percent compared to the funds mobilized last year to finance sustainable projects, reaching a total of 4.6 billion pesos by 2023.
The BBVA Group, which expects to mobilize more than €300 billion in sustainable finance by 2025, is a founding member of the group of 30 banks that espouse the United Nations Principles for Responsible Banking, which define the role of the financial sector in moving towards a low-carbon economy.
To further reinforce that commitment, the bank aims to ensure that all the products it offers to its clients–whether they are large companies, institutions, SMEs or individuals–have a sustainable solution.