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Spanish Bank BBVA Closes 150 Mln-euro Term Loan On Blockchain With Porsche


Spanish bank Banco Bilbao Vizcaya Argentaria SA or BBVA, closed a 150 million euro or $170 million acquisition term loan with European automaker Porsche Holding using blockchain technology. The term loan is to be used by Porsche for strategic acquisitions in the retail distribution network in Europe and Asia.

BBVA says this is its first blockchain-powered corporate loan deal struck by it outside Spain with a non-Spanish borrower. The negotiation and closing of the corporate loan were performed using blockchain.

This is also claimed to be the first acquisition term loan ever arranged on blockchain. The pilot used BBVA's private blockchain network (Hyperledger), developed by BBVA based on distributed ledger technology.

BBVA has already closed several blockchain-powered loan deals involving Spanish corporate companies. The automation of the negotiation process using blockchain minimizes operational risks and reduces the processing time from days to hours for negotiation and closing of the agreement conditions for the loan.

Blockchain technology also ensures traceability and immutability making the documentation process safer and more transparent.

BBVA, Spain's second largest bank, claims to have recently successfully carried out the first pilots in the world to issue corporate loans powered by blockchain technology.

The bank partnered with Spanish tech consultancy firm Indra, and issued 75 million euros or $87 million in corporate loans through DLT and smart contracts. BBVA then signed a new 100-million-euro or $117 million long-term bilateral corporate loan in July using blockchain technology with Spanish civil engineering company ACS Group.

Following that, BBVA also renewed a credit line worth 325 million euros or $380 million, involving a revolving credit facility, using DLT and smart contracts in a deal with Spanish energy firm Repsol SA.

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