Business Forum • 21 May, 2024 at 2:22 PM
Garanti BBVA Romania continues its commitment to sustainability by contributing €48 million to the syndicated loan raised by Ford Otosan Romania, thus supporting the electrification of the auto industry in Romania. The financing will be used to support the production of the new Ford Puma, the Ford Transit Courier and Ford Tourneo Courier models, as well as the production of their all-electric versions.
Garanti BBVA Romania has prioritized sustainability since 2020, significantly contributing as a financial partner to projects that support inclusive economic and social development and are environmentally friendly.
A recent example is Garanti BBVA Romania's participation with €48 million, alongside its sister bank, Garanti BBVA International NV (which separately committed an additional €20 million) in the syndicated transaction of Ford Otosan Romania worth €435 million, in a consortium of banks led by BRD Societe Generale as the MLA coordinator and Bookrunner of the transaction.
"The syndicated loan granted to Ford Otosan represents a shared commitment to sustainability by a significant group of international and Romanian banks, of which Garanti BBVA is a part. This loan marks a strategic step towards the electrification of the auto industry in Romania and a key project for the local economy. Furthermore, the initiative supports energy transition, and we are proud to join as financial partners", said Bilge Demirer, Deputy General Manager of Garanti BBVA Romania.
Indeed, Garanti BBVA's growth strategy in Romania is based on integrating ESG principles into business decisions. Among the projects financed by Garanti BBVA are green buildings such as Upsite and Ivy, the production of electric engines by Softronic in Craiova, as well as a series of educational and healthcare projects. Currently, 10% of Garanti BBVA's companies loan portfolio is dedicated to sustainable financing.
Garanti BBVA Romania thus operates in line with the principles of the Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA), of which it is a part, a global pioneer in sustainability. BBVA conducted sustainable business activities worth over €20 billion in the first quarter of 2024, up 41% compared to the same period last year. Furthermore, BBVA is approaching its goal of mobilizing €300 billion between 2018 and 2025, with €226 billion already committed. Moreover, BBVA receives the highest Dow Jones sustainability index score annually in the EU.
In the near future, Garanti BBVA Romania's strategy is to mobilize all its resources and expertise to accompany its customers on their journey towards sustainability, offering them personalized products, consultancy, and suitable financing solutions.