Wednesday, 08 April 2020

Porsche arranges acquisition finance loan on BBVA blockchain

BBVA has negotiated and closed a EUR150 million term loan for Porsche Holdings using blockchain technology.

The transaction is the latest in a number of notable DLT-based deals conducted by the Spanish bank with corporate customers, including the arrangement of a EUR150 million syndicated loan for Red Eléctrica Corporación, renewal of a EUR325 million credit line with Repsol and the signing of a €100-million-euro long-term bilateral corporate loan with ACS.

Using the same mix of private and public blockchain technology, the latest deal with Porsche is the first conducted by the bank with a non-Spanish borrower. BBVA believes that since speed of execution is essential to the success of acquisition finance transactions, the use of the distributed ledger technology is particularly relevant.

Frank Hoefnagels, head of BBVA CIB in Germany, says: “This transaction is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution”.

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