BBVA and Red Electrica Corporation have become the first in the world to deliver a syndicated loan using blockchain. Linklaters advised BBVA on the €150m syndicated loan with the whole facility’s negotiation process closed over the blockchain network. Linklaters also advised MUFG of Japan and BNP Paribas as co-lenders.
Banks have started to seize on the technology, which allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered. Using the blockchain network allowed for a significant expedition of the process whilst ensuring full documentation tracking and negotiation transparency.
Juan Barona, Banking partner at Linklaters, says:
“This is a great example of how transactions can be simplified with a speedier process using existing technology. It’s been a fantastic transaction to be involved with, working with a client that is at the forefront of innovation in financial markets. As the technology becomes more embedded, we’ll see a greater uptick in use which is really exciting.”
Linklaters is a market-leader in advising on the application of new technologies to finance, from the implementation of SWIFT payments to the advent of blockchain and digital currencies. For example, the firm has partnered with The International Swaps and Derivatives Association to develop a tool that will allow firms to electronically negotiate initial margin documentation.