Two Spanish banks, Santander and BBVA, and utility company Iberdrola, are claiming a blockchain first after arranging a syndicated financing facility executed through a blockchain platform
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According to the banks, the €150 million transaction is the first live syndicated to be managed using DLT technology.
The platform was developed by ioBuilders while Gómez-Acebo & Pombo acted as legal advisers on the transaction.
Using DLT allows the various counterparties in the transaction to work from and maintain one single, synchronised and immutable record of information. This should, in trun, lead to reduced operating costs and increased efficiency in what is seen as one of the most important segments of corporate financing.
"This transaction represents an important step forward in the evolution of syndicated financing, demonstrating how DLT-based technologies can bring greater efficiency, transparency and traceability to complex financial processes," said Rob Kay, global head of investment grade and emerging markets debt at Santander CIB.
"It also highlights how digital assets are already generating tangible value for the business and contributing to the transformation of financial markets. At the same time, it lays the foundations for an industry collaboration model with the potential to redefine different aspects of corporate financing.”
"By combining the advantages of DLT as an immutable record with the programmability of smart contracts to automate operational processes, our ambition is for this platform to become a meeting point that other institutions can join to help drive the syndicated loan market,” added Alberto Falco, Head of Portfolio Monitoring and Innovation at BBVA CIB.