Porsche Holdings has finalized a USD 170 million term loan with Spanish banking giant, Banco-Bilbao Vizcaya Argentina (BBVA), making Porsche the first non-Spanish company to receive a loan from BBVA this way.
According to a report made by Innovation Enterprise, Porsche Holdings, one of the world’s largest vehicle distributors and Europe’s largest has completed the loan using BBVA’s distributed ledger technology (DLT) system. The loan was issued to facilitate “strategic acquisitions in the in the retail distribution network in Europe and Asia”.
Suggestive of Porsche’s position in the future of blockchain, Dominik Paschinger, branch manager of Porsche Corporate finance in Belgium 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 [sic] able to explore the technological capabilities together with BBVA.”
Last month, the BBVA piloted the platform with Red Electrica, Spain’s foremost national grid and electricity distribution firm; the pilot featured a syndicated loan which transacted USD 150 million across the BBVA blockchain platform.
With regard to the Porsche loan, a statement from the BBVA writes: “The use of blockchain for the arrangement of this facility has demonstrated the extent to which new technologies can provide a leap in efficiency in financial markets.”
Naturally, BBVA was bullish on the tech and is backing it due to the hallmark traits of blockchain technology and then some, namely traceability, immutability, minimizing operational risk and the automation of the negotiation process. The bank describes the need for DLT platforms in financial deals due to the speed of execution; the bank values this as an essential for acquisition finance transactions.
Head of BBVA CIB in Germany, 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. To be on a common path with our longstanding partner Porsche Holding makes us equally proud.”
The news arrives shortly after computing behemoth IBM had published the results of a survey that gauged the sentiments toward blockchain within the automotive industry. After receiving responses from 1,314 automotive executives, the study found that a majority of respondents saw the tech being a disruptor within the next three years.
It also established a category of respondents named “Auto Pioneers”. To qualify for this title, survey participants need to “report familiarity” with their respective businesses blockchain strategy, and secondly, have confirmed that their companies are either experimenting, piloting or implementing blockchain technologies. These pioneers are reportedly “investing aggressively” into blockchain.
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