BBVA and KKR form strategic partnership focused on climate By Reuters

By Simon Jessop

NEW YORK (Reuters) – Spanish lender BBVA ( BME: ) and U.S. investor KKR said on Friday they had formed a strategic partnership focused on investments linked 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 at Climate Week in New York, and the initiative will also look at finding investments related to climate infrastructure.

“We are confident that the second part of this decade will see strong growth in new low-carbon infrastructure. It’s a huge opportunity,” said BBVA’s Global Head of Sustainability and Corporate and Investment Banking at BBVA, Javier Rodriguez Soler.

The tie-up with KKR will be a “key piece” of the bank’s sustainability strategy, he added, as it aims to become a leader in finance and advisory services for clients in the US and Europe.

“With KKR’s proven experience in this field, we will share our teams’ knowledge, capabilities and efforts in this strategic alliance to multiply investments in infrastructure and climate projects,” said Soler.

BBVA has said sustainability is one of its six strategic priorities, aided by a global finance unit specializing in cleantech innovation with offices in New York, London, Madrid and Houston.

To date, KKR has made three investments from its climate change strategy, including 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 greatest investment opportunities of our time and requires the participation of the entire financial sector,” said Emmanuel Lagarrigue . co-head of KKR’s global climate strategy.

“We are delighted to partner with BBVA, given its industry-leading presence in the renewable energy sector and their deep commitment to mitigating the impact of climate change.”