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Sustainable financing

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Bankia is committed to following a sustainable approach to its activity and aspires to become a model of sustainable financing.

To that end, it has created the Sustainable Business and Financing Directorate, whose mission is to drive the mobilisation of resources within an action framework committed to environmental, social and governance criteria (ESG) and to promote the financing of investments under those same criteria.

This new directorate has an enterprise-wide remit to lead an internal project involving the entire organisation.

One of the initiatives it implemented in 2019 was to define a sustainable financing framework that lays the foundations for the development and marketing of products and services that respond to customers’ demands. In this context, any financing opportunities that arise in the world of companies and individuals in response to the foreseeable and necessary transformation towards a lowcarbon economy are subjected to careful analysis.

Bankia is making climate risk management a part of its governance and risk maps and is working on a series of sectorspecific guides that will set conditions for the financing of sectors which, by their nature, are liable to have an environmental or social impact.

To promote sustainable consumption and investment in companies and among the self-employed and households, Bankia’s product offering includes products such as the Sustainable Credit facility, the Sustainable Business Loan, hybrid or zeroemission vehicle leasing, and special insurance for solar PV installations and for farmers.

Other sustainable products include the Bankia Futuro Sostenible Fund, which already has 24 million euros of assets under management; the Bankia Futuro Sostenible Mixed Fund (7.5 million euros in assets); and the Valores Responsables Guaranteed Fund, which guarantees 100% of the principal invested and a payment of 0.15% per year, in addition to the possible appreciation of a basket of sustainable shares selected according to the ‘best in class’ criterion.

With the aim of providing a differentiated range of sustainable financing, in 2018 Bankia signed a pioneering agreement with the European Investment Bank (EIB) to co-finance the construction of low-emission, energy-efficient residential buildings with an environmental sustainability certificate. This is the first time the EIB has promoted this type of mortgage in the European Union.

The collaboration with the EIB was extended with the creation of a line of credit for the hotels and restaurants sectors to finance investments that entail energy savings or the use of renewable energy, offering attractive terms thanks to the EIB funding.

The bank also entered into a number of financing arrangements in 2019 that include financial clauses linked to the achievement of certain sustainability goals or indicators, so as to give clients incentives to meet sustainable targets.

In Project Finance, where it has its own specialised team, Bankia financed investments in renewable wind, solar PV and solar thermal energy, applying the Equator Principles, and acted as bookrunner for sustainable bonds issued by certain clients.

In the fields of corporate finance, project finance and real estate development finance, in 2019 Bankia financed transactions for a combined total of more than 900 million euros, helping to mobilise sustainable financial resources totalling almost 9 billion euros.

In savings and investment products, Bankia Asset Management offers specific occupational pension plans and investment funds that incorporate ESG criteria, with a total of 1,068.27 million euros of assets managed under these criteria.

Challenges for 2020

In 2020 Bankia aims to strengthen its portfolio of financing products, both for individuals and for businesses. Already in January it launched sustainable leasing for solar PV self-consumption and other sustainable assets related to renewable energy, energy efficiency, sustainable vehicles and waste management. Furthermore, Bankia Asset Management’s Strategic Plan includes the deployment of responsible, sustainable management as a key project. To bring about these changes, Bankia Asset Management will implement a shift towards a holistic model of sustainable management: governance, nonfinancial risk management, and development of investment solutions.


9,000
MILLION EUROS
CONTRIBUTION TO THE MOBILIZATION OF
‘GREEN FINANCE’

ESG-Oriented products

  • Sustainable credit and sustainable business loans: Financing for hybrid or electric vehicles, purchase of energy-efficient home appliances, and home/local improvements that increase energy efficiency.
  • Leasing and insurance for hybrid or zero-emission vehicles.
  • EIB agri-food facility: Financing of investments by self-employed entrepreneurs and agribusiness firms in new light commercial vehicles and passenger cars that meet a certain level of CO2 emissions.
  • EIB youth employment facility: Investment financing and working capital finance for SMEs, midcaps and self-employed business owners who undertake to hire or create traineeships for young people aged 15-30.
  • EIB sustainable financing for the hotel sector for energyefficiency projects in
    accommodation or catering services (food and beverages).
  • Sustainable leasing for solar PV selfconsumption and financing of other sustainable assets and facilities related to renewable energy, sustainable vehicles or waste management.
  • Damage insurance for solar PV plants and wind turbines.
  • ICO Sustainable Leasing: Within the framework of the ICO 2020 facilities.
  • Finance for renewable energy projects.
  • Corporate finance linked to compliance with sustainability metrics or targets (Green loans/Sustainable loans).
  • Green housing loans: Financing for real estate developments with BREEAM certification.
  • EIB facility to finance access to lowemission, energy-efficient housing.
  • Bankia Futuro Sostenible Fund and Bankia Futuro Sostenible Mixed Fund, managed under ESG criteria.
  • Valores Responsables Guaranteed Fund, offering additional return based on the share price of three world ESG leaders (according to Sustainalytics).
  • Occupational pension plans that manage their assets under ESG criteria.
  • Soluciona Empresas tools for companies to assess their own energy efficiency and obtain voluntary energy and environmental management certification.

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