A new investment in BBVA Perú will help jump-start Peru's underdeveloped green building finance market, alleviating the impact of climate change from buildings by strengthening BBVA's ability to structure green building financing following international best practices.
The International Finance Corporation (IFC), member of the World Bank Group, has signed a US$60 million loan to support BBVA Perú efforts to develop its green building business line by financing homebuyers' green mortgages and providing advisory services through EDGE, IFC's green building certification program.
Elizabeth Martínez de Marcano, IFC's Manager for the Andean Region, said: "It's an honor to participate in this investment with BBVA Perú. This is the first green mortgages project with a significant market player in Peru's financial sector, making it a unique opportunity for IFC to support financial inclusion, housing and green buildings finance in the country."
"The agreement with the IFC helps us to have a positive impact on the quality of life of people who buy a home and strengthens BBVA's commitment to sustainability in Peru. Our goal is to accompany our clients in the transition to a future greener and more sustainable, also stimulating economic growth that allows creating more opportunities for all", said Fernando Eguiluz, CEO of BBVA in Peru.
The investment is IFC's first green project in Peru supported by the Market Accelerator for Green Construction (MAGC) program, which is sponsored by the United Kingdom, acting through the Department for Business, Energy and Industrial Strategy. MAGC helps scale green construction across emerging markets by incentivizing financial intermediaries to scale up green residential construction.
During the next decade, green buildings represent a significant low-carbon investment opportunity in emerging markets $24.7 trillion by 2030. Cities in emerging markets are expanding at a fast pace to keep up with high population growth and rapid urbanization. The floor area of the buildings that dot our skylines is expected to double by 2060. Most of this growth will occur in residential construction, particularly in middle-income countries. By accelerating the construction of certified green buildings, the MAGC program aims to mobilize US$2 billion in investments to help mitigate climate change.
About IFC
IFC a member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About BBVA
BBVA is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico and it has leading franchises in South America. It is also the leading shareholder in Turkey's Garanti BBVA and has an important investment, transactional and capital markets banking business in the U.S. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
