Last week Spanish bank
BBVA negotiated a €220 million sustainable “Schuldschein” loan for the Madrid Government using blockchain. Over the past year, BBVA has arranged many different types of loans using its blockchain loan platform.
Schuldschein loans are becoming increasingly popular because they are flexible and structured as a hybrid between bonds and loans. This sort of loan is less expensive compared to a bond, but tradeable. In June 2017
LBBW used blockchain to help Daimler to launch a €100 million Schuldschein.
The BBVA negotiated loan aims to finance sustainable development within Madrid. ICMA’s
Greed Bond Principles were used for the debt structuring. These recommend transparency particularly regarding the environmental impact of the funds use.
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