BBVA and EIB sign €1bn synthetic securitisation on blockchain

[PRIBO247]

BBVA and the European Investment Bank Group (EIB) have
signed a synthetic securitisation of €1 billion on blockchain.
The agreement is the first of its kind in the European Union and the third
synthetic corporate loan securitisation signed by EIB and BBVA.

The DLT platform developed by BBVA was used to negotiate
this agreement, from the origination to the signing, and also
ensures “traceability and immutability”, so making the
documentation process “safer and more transparent”.
All the negotiation was recorded on the private blockchain
Hyperledger, while a hash or unique identifier of the signed
agreement were recorded on the public blockchain Ethereum
(testnet).

BBVA and EIB Group will also provide €360 million to finance
investments projects of Spanish SMEs and midcaps, for which
the EIB Group, formed by the European Investment Bank and
European Investment Fund (EIF), have granted BBVA a €60
million synthetic guarantee.
The agreement got support from the European Fund for
Strategic Investments (EFSI). BBVA says EFSI’s support
increases the EIB Group’s capacity to finance investment
projects with a higher risk profile.

In November 2017, EIB and BBVA provided €300 million to
finance the digitalisation of small Spanish businesses; in June
2016, they launched a €600 million credit line; and in 2015,
they approved a €1 billion credit line to help SMEs.
This synthetic development is another chapter in BBVA’s
blockchain progress.

Last week, BBVA and Porsche Holding Salzburg closed the
“first” acquisition term loan using the technology.
Prior to that, BBVA and Santander got involved in the
European Commission’s planned launch of the International
Association for Trusted Blockchain Applications (IATBA) next
year.
In addition, BBVA delivered the first syndicated loan on the
technology; and joined a pilot test for improved issuing of
warrants .

https://www.bankingtech.com/2018/12/