Banco Bilbao Vizcaya Argentaria (BBVA) has announced the launch of the first blockchain-backed platform for structured green bonds.

In a press release, Spain’s second-largest bank confirmed that it had completed a deal with Spanish insurance house Mapfre, which has invested €35 million (US$40 million) to finance sustainable products.

To conclude the deal, BBVA has “issued the first structured green bond using blockchain technology to negotiate the terms and conditions,” according to the release, which added that the funds have been specified for financing green projects, under the umbrella of BBVA’s sustainable development goals.

The product is designed according to the required rate of return, terms, and risk tolerance of the investor, with Mapre opting for a six-year term bond linked to the evolution of the five-year euro swap rate.

“With this deal, BBVA reasserts its firm commitment to both sustainable financing and new technologies.” said BBVA’s head of global sales, Juan Garat.

“Using DLT - distributed ledger technology - for this transaction allowed us to simplify the processes and streamline the negotiation time frames, which is in line with our pursuit of excellence in customer service”.