BBVA Issues Porsche Corporate Loan Via Blockchain
Porsche a leader in Sports car manufacturing and financial services group Banco Bilbao Vizcaya Argentaria (BBVA) announced the closing of a €150 million (approximately $170 million) corporate loan deal using the Spanish bank’s blockchain platform.
BBVA claims that the loan is the “first acquisition term loan ever arranged through blockchain technology” was granted to Porsche Holding Salzburg, Europe’s largest automotive distributer. The loan will facilitate the “strategic acquisitions in the retail distribution network in Europe and Asia.”
Porsche is now boastfully the first non-Spanish company to use the BBVA’s blockchain to close a corporate loan.
BBVA announced back in April that it had completed a €75 million “global corporate loan transaction” using blockchain technology from start to finish. During this pilot test, BBVA partnered with Idra,a global technology and consulting company to see if blockchain tech could possibly increase the transparency related to the corporate loan process.
In May this Year, BBVA also partnered with Japan-based Mitsubishi UFJ Financial Group (MUFG) and France’s BNP Paribas to complete a €150 million loan that was granted to Red Eléctrica Corporation which is Spain’s national electrical grid operator.
While BBVA’s claim that the Red Eléctrica Corporation loan is the first “blockchain-based syndicated loan arrangement” and that it was the first time a real-life deal was completed, the deal actually took place on the Ethereum testnet instead of the mainnet.
BBVA is now looking forward to using blockchain technology to increase the usefulness and transparency of its “core products,” such as corporate financing, and develop a “Do It Yourself (DIY) financing model for its business and corporate clients.”
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