The bank advocates green credits for individuals and companies

The commitment to the environment is beginning to permeate financial institutions. The big banks, with BBVA, Santander, Sabadell, CaixaBank, Bankia or Bankinter at the head, are launching financial products aimed at the sustainable economy. BBVA has just taken out a green loan worth €20 million to finance the purchase of electric and hybrid cars. The maximum amount that can be financed is 75,000 euros, with a repayment term of 8 years and an interest rate of 5.13% (APR) without opening fee. Similarly, Santander has a loan for the acquisition of the same type of cars, hybrid and electric, with a ceiling of 90,000 euros, an opening fee of 1.5% and a rate of 5.53% APR.

Banks have also launched to finance green housing. The entity chaired by Ana Botín launched last June a mortgage that subsidizes the interest rate on loans for sustainable housing by a maximum of 10 basis points. In addition, it has a financing line of 50 million for the self-employed so that in their offices they put LED lighting, replace air conditioning systems, place solar thermal energy installations or replace normal windows with double glazing. BBVA has gone further and launched a line of developer loans aimed at the construction of energy-efficient homes.

Engine

Banks are taking out loans to finance electric and hybrid

Buyers who finance their home through this new line of green financing could benefit from a bonus on the spread of their mortgage. Bankia offers individuals and self-employed sustainable loans, which are intended for the acquisition of hybrid or electric vehicles, the purchase of new low-consumption appliances or home reforms, which allow improving energy efficiency with the installation of solar panels or condensing boilers. It also has green loans to finance real estate developments with a sustainability certificate.

Similarly, CaixaBank has a line called ecoFinancing, aimed at the purchase of efficient vehicles and appliances, home reforms or agricultural projects, always with the aim of contributing to sustainable development or energy efficiency. Recently, it has opened a credit line with the EIB, both for companies and individuals, to finance works in buildings related to lighting, household appliances, heating or the acquisition of electric or hybrid vehicles, provided that their _CO2 emissions are less than 75 g/km. Bankinter, in its eagerness to support the climate change strategy, has in its portfolio several funds linked to sustainability, such as the Bankinter Sustainability Fund, the Energy Efficiency and Environment Fund and more than 250 responsible investment funds.

Housing

Some mortgage offers reductions in the differential if the house is ecological

In addition, it participates in venture capital companies or other companies that invest in sustainable products, such as Helia Renovables, a company that it established in 2017 with Plenium Partners to invest in the field of renewable energies. Banc Sabadell is another of those that is making a great commitment to support companies, and even public administrations, in the financing of energy efficiency facilities through specific renting and leasing products to finance from public lighting projects, to boilers of biomass facilities or cogeneration facilities. In addition, Banc Sabadell has a renewables subsidiary, called Sinia Renovables, which has €150 million to invest in this type of asset.

To support sustainable mobility, it offers a line of renting sustainable vehicles. And in cities such as Terrassa or Bilbao, it financed hybrid city buses and 100% electric taxis in collaboration with Tesla. Another field where banking has entered fully is in the issuance of bonds and green loans for companies. Companies such as Iberdrola, Adif or Telefónica are betting on launching issues of this type and Spanish banks are very active both in their role as lenders and underwriters. Even BBVA has launched its own green bonds. The Bank of Spain urged banks a few months ago to promote financing and projects to promote climate change and it seems that in this matter the duties are being fulfilled because behind it there is a big business.

Renewable electricity in your offices

In their eagerness to support the environment, all banks are trying to make energy consumption in their headquarters and offices 100% renewable. BBVA has committed to 70% of the energy contracted by the group being renewable by 2025. It has even signed an agreement with Endesa to have its own wind farm in Spain.

CaixaBank is the only Ibex 35 entity that offsets 100% of its emissions and 99.4% of the energy it consumes is already of renewable origin. Similarly, in Banc Sabadell 99.94% of the electricity consumed has renewable origin. Bankinter was the first bank in Spain that in 2015 developed the calculation of the carbon footprint of its activity. And now it is developing, together with the Natural Capital Coalition, a United Nations program to develop a guide for the financial sector on this matter. At Bankia, 100% of the electricity consumed is green electric energy with a guarantee of origin and 72% of its fleet vehicles are hybrids with low _CO2 emissions.

Banco Santander has launched an energy efficiency and sustainability plan for the period 2019-2021. In all its buildings and offices in Spain, Germany and the United Kingdom, 100% of its energy is green.

Source: The Vanguard