Daily News: December 19, 2018

BBVA Closes First Acquisition Term Loan Arranged Through Blockchain


BBVA closed a €150 million ($171 million) acquisition term loan on behalf of Porsche Holding Salzburg, the first loan of its kind arranged through blockchain technology.

Porsche is also the first non-Spanish borrower to use this technology to negotiate and close a corporate loan.

The pilot facility used the platform developed by BBVA based on distributed ledger technology.

The use of blockchain for the arrangement of this facility demonstrates the extent to which new technologies can provide better efficiency in financial markets by automating the negotiation process and minimizing operational risks, thanks to the inherent characteristics of the technology. It also ensures traceability and immutability, making the documentation process safer and more transparent.

Frank Hoefnagels, head of BBVA CIB in Germany, said, “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. To be on a common path with our longstanding partner Porsche Holding makes us equally proud”.

Dominik Paschinger, branch manager of Porsche Corporate Finance in Belgium, added, “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”.

Porsche plans to use the loan to back strategic acquisitions in its retail distribution network in Europe and Asia.