Porsche Holding Salzburg, the largest car distributor in Europe controlled by Volkswagen AG, has obtained a $170 million blockchain-based loan organized through Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria (BBVA).
According to the financial news site Finextra, BBVA has negotiated and closed a $170 million term loan for Porsche Holdings using blockchain technology, backing strategic acquisitions in the retail distribution network in Europe and Asia.
The loan was granted through the platform developed by BBVA itself and based on distributed ledger technology.
This deal with Porsche Holdings is the first conducted by BBVA with a non-Spanish borrower. The second largest bank in Spain believes that since speed of execution is essential to the success of acquisition finance transactions, the use of the distributed ledger technology is particularly relevant.
The head of BBVA CIB Frank Hoefnagels said: 'This transaction is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution.'
Dominik Paschinger, Branch Manager of Porsche Corporate Finance in Belgium, agreed with Hoefnagels and said:
'With digitalization being an integral part of Porsche Holding’s Strategy 2025, the goal is to advance in all fields of activity. We think that the blockchain technology has great potential and are therefore very excited to being able to explore the technological capabilities together with BBVA.'
BBVA hopes to use blockchain to automate negotiation processes and minimize operational risks as well as improving the client experience. According to BBVA the use of blockchain for this loan has shown to what extent new technologies can make a leap in efficiency in the financial markets.
BBVA already used its platform for several other types of loan deals with Spanish organizations and adds that 'BBVA’s objective is to offer to its corporate clients, not only the most appropriate financial solutions, but also cutting edge innovation and technological capabilities, such as blockchain.'
Your wait is over.— Porsche (@Porsche) November 28, 2018
Porsche presents the new 911.
The silhouette: iconic.
The technology: inspired by racing victories.
The design: timeless.#NewPorsche911 #TimelessMachine #Porsche #992 pic.twitter.com/g8Nqd7r0pR