BBVA’s US$30m Sustainability Bond for Climate Change Action

Sustainable bonds come in two categories: green and social.

Green bonds are used exclusively for environmental projects whilst social bonds are used for projects addressing social inequalities and progress. 

Banks like BBVA are a key player in providing sustainable finance, bonds and initiatives.

Garanti BBVA has announced that it has officially completed the issuance of a sustainable bond, focused on climate adaptation and resilience under the framework of its international funding programme.

Sustainable financing for the future

The bond marks the first sustainable finance transactions to purely focus on climate resilience and adaptation.

Garanti BBVA’s bond has a tenor of 371 days and a principal amount of US$30m, being carefully constructed under the bank’s Sustainable Debt Financing Framework.

This bond is in line with the bank continuing to “diversify its sustainable finance strategy”.

According to the United Nations (UN), in 2024 developed countries agreed to provide at least US$300bn to developing countries each year and to step up efforts to secure US$1.3tn in climate finance from public and private sources by 2035.

The proceeds from the bond are set to finance projects that are actively targeting:

• Climate-resilient water infrastructure and water management
• Flood prevention and stormwater management infrastructure
• Climate- and disaster-resilient public infrastructure
• Post-disaster reconstruction
• Resilient urban regeneration and infrastructure reinforcement
• Emergency preparedness and early warning systems
• Digitalisation and modernisation of water utilities and critical infrastructure.

“The climate crisis requires not only a transition to a low-carbon economy, but also the transformation of our production systems, cities, natural resources and infrastructure to become more resilient to changing climate conditions,” says Mahmut Akten, country manager of Garanti BBVA.

“Through this issuance, we aim to finance projects that strengthen long-term resilience while supporting sustainable development.” 

What is the Sustainable Debt Financing Framework? 

BBVA’s Sustainable Debt Financing Framework sets out how the bank raises green, social and sustainability-linked financing through loans and debt instruments to finance or refinance eligible projects. 

The framework aligns with internationally recognised standards, including the ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines, alongside the Green and Social Loan Principles. 

It establishes clear processes for project evaluation and selection, management of proceeds, reporting and external review to ensure transparency and accountability. 

Eligible funding is directed towards projects that deliver environmental or social benefits, ranging from renewable energy and energy efficiency to affordable housing, financial inclusion and access to essential services. 

The UN states that in 2023 climate adaptation finance reached US$26bn; however, by 2035 the finance needed in developing countries is expected to be a minimum of 12 times higher.

The framework also incorporates BBVA’s internal sustainable activities taxonomy, which is informed by the EU Taxonomy for Sustainable Finance to create a consistent approach across the Group. 

It forms part of BBVA’s wider sustainability strategy and governance model, supporting the integration of sustainability into its financing activities and long-term business objectives.

The wider sustainability goal

BBVA pledged in 2025 to channel €700bn (US$797bn) in sustainable business between 2025 and 2029.

BBVA has made sustainability a core pillar of its long-term strategy, supporting customers with financing, innovation and expertise to accelerate the transition to a low-carbon and more inclusive economy. 

“At BBVA we continue to view sustainability as a strategic priority and a key driver of differential growth,” says Javier Rodríguez Soler, Global Head of Sustainability and Corporate and Investment Banking at BBVA.

“We believe that the business opportunity in the second part of the decade will be driven by solid investment in infrastructure and by the maturity of certain new clean technologies, which will make them ― many of those that are not yet ― profitable.” 

The bank surpassed its original €300bn (US$341.6bn) sustainable business target a year ahead of schedule, channelling €304bn (US$346bn) between 2018 and 2024, with 78% directed towards climate action and natural capital and 22% supporting inclusive growth initiatives. 

According to the UN, carbon pricing revenues reached US$102bn in 2024 with more than half going to environmental, infrastructure and developmental projects.

To date, BBVA has reached €170bn (US$193.5bn) out of its €700bn (US$797bn) target, including €36bn (US$40.9bn) in the quarter alone. 

Alongside financing, the bank continues to reduce its own environmental footprint, sourcing 99% of its global electricity from renewables in 2025 while cutting Scope 1 and 2 emissions by 83% since 2019.