Spanish financial services company BBVA and US-based investment firm KKR have entered a new strategic partnership to support the decarbonisation of the economy.
Under the partnership, BBVA has committed $200m to KKR’s Global Climate strategy, which invests in solutions that support the transition to a low-carbon economy at scale.
The partnership will also pursue new climate infrastructure-related investments, including opportunities that support the energy transition and electrification.
In addition, it will support the respective organisation’s complementary strengths, knowledge sharing and shared goals of advancing the energy transition.
BBVA sustainability and CIB global head Javier Rodríguez Soler said: “We are confident that the second part of this decade will see strong growth of new low carbon infrastructures. It is an immense opportunity.
“Our goal is to become a leader in deploying advisory and financing to support our clients in US and European sectors like Energy, Construction, Mobility and others in building the infrastructures of the future.
“This ambitious strategic partnership with KKR will be a key piece of our sustainability strategy. Teams from both groups will work together to take advantage of this opportunity of growth for our businesses.”
BBVA said it has identified decarbonisation and clean technologies as key investment areas and has established a global financing unit specialising in cleantech innovation.
The Spanish lender invests in several advanced climate action funds to achieve financial returns and participate in disruptive projects.
The bank also seeks to develop expertise in these new technologies to better advise companies that are impacted by them, and eventually support them with their financing needs.
Recently, BBVA has created a sustainability hub in Houston, as part of its goal to advance the financing of the energy transition in the US.
Soler added: “To address the major decarbonisation projects that the world needs, leading global investors and financial institutions must play a key role.
“Large asset managers and international banks are necessary to finance this transition and support all sectors on their respective decarbonisation paths in an orderly manner.
“With KKR’s proven experience in this area, we will share knowledge across our teams, capabilities and efforts in this strategic alliance in order to multiply investments in infrastructure and climate projects.”
KKR has more than 15 years of experience in infrastructure investing and deep expertise in renewable energy and climate-related investments.
The company has invested more than $21bn from its infrastructure platform alone.
KKR invested in Zenobē, a UK-based market leader in transport electrification and battery storage solutions, in September last year.
In March this year, the firm invested in Avantus, a US-based developer of large utility-scale solar and solar-plus-storage projects.
Recently, KKR invested in Ignis, an integrated global renewable group to develop primarily green hydrogen and ammonia projects for industrial applications.
KKR’s Global Climate Strategy co-heads Emmanuel Lagarrigue and Charlie Gailliot said: “We are still in the early innings of what will be a multi-decade transition to net zero, which is one of the biggest investment opportunities of our time and requires participation from across the financial sector.
“We are delighted to collaborate with BBVA given their industry-leading presence within the renewables sector and their deep commitment to mitigating the impacts of climate change.”
