The 2019 syndicated loan market in
In addition, the
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Despite the unsettling factors that loomed large throughout the year -mainly, trade tensions between
The trajectory for prices and terms has also been relatively constant. Level prices have been most noticeable in the structuring and underwriting commissions. There has been no change to terms in maturity, with terms of between five and seven years continuing as the norm. Optimal market conditions have not lent themselves to longer terms in maturity for syndicated loans, given the long term risk and return requirements of financial institutions.
Regarding project finance activities, it is worth drawing attention to the energy sector, which focused on renewable energy. So-called 'greenfield' projects -projects that will use financing to build construction from scratch- were also prominent in the sector. Deals in the infrastructure and telecommunications industries were also important, marked by significant refinancing activity and acquisition loans. The commercial real estate sector was also active in 2019.
The leveraged finance market also benefited from the landscape, especially starting from the second quarter of the year. The inaugural issuance by Spanish telecommunications player, MasMovil, and the refinancing of senior secured debt by Spanish multinational pharmaceutical manufacturer,
BBVA strives for a sustainable future
The second area where BBVA focused its efforts in 2019 was in sustainable transactions, an area that has ceased to represent a mere niche segment and has gradually become more and more important to the market. While energy company
FINANCIAL AND COMMERCIAL SERVICES
Sustainable agent: banks taking action against climate change
In recent years, society has become increasingly aware of the importance of climate change. The not so remote hazards it poses to our current way of life make changes in current policies necessary. The financial industry is joining forces in the fight against climate change through sustainable finance. Sustainable loans are one of the key tools, and banks play a decisive role when they act as sustainable agents for these loans. But what does this actually entail?
BBVA has played a leading role in sustainable finance on the international stage, and even more specifically in
Looking to 2020, the experts expect even more green activity on the part of borrowers and lenders. As a reaffirmation of its commitment to the environment and its mission to set the standard for the industry, BBVA has committed to focusing especially on companies that are looking to start their journey towards sustainability. In order to guarantee utmost transparency in the market and avoid any alleged 'greenwashing,' the bank works with recognized top-tier independent third parties who formally certify sustainable activities.
The digital transformation, stronger than ever
BBVA has placed digital transformation at the core of its strategy and has broken new ground by using blockchain technology to finalize complex transactions and by incorporating digital indicators in its day-to-day operations. After the influx of new technologies in the financial sector in 2018, the major changes last year focused on using digital business and risk and return platforms to provide greater agility when kicking-off new business opportunities and processing transactions. These platforms have driven digitalization across the complete value chain so the bank can better respond to its clients' needs.
To this end, at the beginning of 2019, the bank announced a first-of-its kind product: the D-Loan (digital loan), a type of corporate loan, which aims to incentivize companies to ramp up their digital transformation. The price of the loan depends on the the borrower's level of digital maturity, which is determined from an annual assessment conducted by specialist consulting firms. By linking improved financing conditions to the client's improved digital capacities, BBVA provides compelling incentive for companies to move in a digital direction. The business customer thus pegs its financial instruments to its corporate digital strategy, an aspect that currently demands significant bandwidth from most business executives. In addition, BBVA financed Asterion's acquisition of
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