By Simon Jessop
NEW YORK (Reuters) – Spanish lender BBVA (BME:) and U.S. investor KKR said on Friday they have formed a strategic partnership focused on investments related to the world’s climate-driven transition to a low-carbon economy.
BBVA will invest $200 million in KKR’s Global Climate Strategy, the companies said in a joint statement during New York Climate Week, and the initiative will also explore finding climate infrastructure-related investments.
“We are confident that there will be strong growth in new low-carbon infrastructures in the second half of this decade. It is a huge opportunity,” said Javier Rodriguez Soler, Global Head of Sustainability and Corporate & Investment Banking at BBVA.
The partnership with KKR will be a “key piece” of the bank’s sustainability strategy, he added, as it aims to become a leader in providing financial and advisory services to clients in the US and Europe.
“With KKR’s proven experience in this area, we will share knowledge with our teams, capabilities and efforts in this strategic alliance to multiply investments in infrastructure and climate projects,” said Soler.
BBVA said sustainability is one of six strategic priorities, aided by a global financing unit specializing in clean technology innovation with offices in New York, London, Madrid and Houston.
To date, KKR has made three investments under its climate strategy, including in UK-based transport electrification and battery storage solutions provider Zenobe and US solar and solar-plus-storage developer Avantus.
“We are still at the beginning of what will be a multi-decade transition to net zero (carbon) emissions, which is one of the largest investment opportunities of our time and will require participation from the entire financial sector,” said Emmanuel Lagarrigue , co-head of KKR’s global climate strategy.
“We are excited to partner with BBVA given their leading presence within the renewables sector and their strong commitment to mitigating the impacts of climate change.”
