Bilbao-based BBVA used blockchain again, this time assisting the first non-Spanish corporate client. The bank implemented DLT for a €150 million term loan for Porsche Holding Salzburg.
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Spain-based multinational bank BBVA announced on Friday that it had used blockchain technology to negotiate and conduct a €150 million term loan for Porsche Holding Salzburg, a subsidiary of German carmaker Volkswagen (VW). This is the latest transaction in a series of blockchain-based deals carried out by BBVA with corporate clients. Porsche Holding Salzburg is currently the largest car distributor in the European Union (EU). Note that the company is part of VW and is different from Stuttgart-based luxury carmaker Porsche.
Earlier, the banking giant arranged a €150 million syndicated loan for Spain’s national electricity grid operator Red Eléctrica Corporación. Elsewhere, BBVA used distributed ledger technology (DLT), an umbrella term of which blockchain is the most popular type, to renew a €325 million credit line with Madrid-based Repsol and sign a €100 million long-term bilateral corporate loan with ACS.
Prior to the deal with Porsche Holding, BBVA had conducted DLT-related deals with Spanish corporate customers only. The bank is confident in the potential of blockchain, claiming that the technology is relevant given the acquisition finance transactions require a decent speed of execution.
Frank Hoefnagels, who leads BBVA’s Corporate and Investment Banking unit in Germany, commented:
“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.”
On the other side, Dominik Paschinger, branch manager of Porsche Corporate Finance in Belgium, stated:
“With digitalization being an integral part of Porsche Holding’s Strategy 2025, the goal is to advance in all fields of activity. We think that the blockchain technology has great potential and are therefore very excited to being able to explore the technological capabilities together with BBVA.”
As for the German carmaker Porsche, it has also shown interest in blockchain technology. In February 2018, the company announced a partnership with blockchain provider XAIN to implement the technology for several car features.
Source: CRYPTOVEST (https://cryptovest.com/news/bbva-uses-blockchain-for-150m-term-loan-for-vws-subsidiary-porsche-holding/)