BBVA Mexico is Mexico’s largest bank, but it has never rested on its laurels.
“What sets BBVA apart in the sector is our capacity to combine the strengths of a global financing group with a deep understanding of local needs,” says Alvaro Vaqueiro, head of corporate and investment banking. “In Mexico, we are the largest, most robust and specialized investment bank, which positions us as the best strategic partner.”
The investment banking division was up 12% year-on-year at the end of the third quarter of 2024. BBVA was the leader in syndicated loans, with 22.2% market share, and in project financing and M&A, with 18% and 15.8%, respectively, in the 12 months to September 30, 2024. For the bank overall, loans were up by 12.5% and deposits by 9.4% through the third quarter; over that same period, net income was up by 4.6% and assets by 6.8%
While BBVA played an essential role in a long list of multi-billion dollar transactions, a stand-out was the Mexican state’s $6.27 billion acquisition of power assets from Spain’s Iberdrola. BBVA played a number of roles in the transaction, including financial advisor to Iberdrola and global coordinator. The transaction included a $2.4 billion equity portion and $3.87 billion in debt financing.
“An emblematic transaction, which reflects BBVA’s commitment and capacity, was the advice provided to Iberdrola for this historic transaction in the energy sector,” says Vaqueiro.
The deal, known as Project Thor, involved the sale of 13 electricity generating assets with a total capacity of 8.54 gigawatts of installed capacity. It was, by far, the largest transaction in Mexico’s energy sector. The assets were transferred through the state’s National Infrastructure Fund (Fonadin) to Mexico Infrastructure Partners (MIP), which now operates them.
Another stand out transaction in the energy sector was Engie’s $2.86 billion financing for its Mayakan natural gas transport system and América Móvil’s second $1-billion bond para part if its 10-year EGS program.
Vaqueiro highlights BBVA inclusion of sustainability and digital innovation pillars in strategy.
He says that BBVA mobilized $13.3 billion in sustainability capital between 2021 and 2023, and an estimates $7.4 billion was added in 2024 alone. He says the bank strictly adheres to best practices to prevent greenwashing.
Vaqueiro says that while the numbers are compelling, the bank is about more than that. “Our leadership is not only about numbers, but our ability to forecast trends, offer innovative solutions and maintain a firm commitment to sustainability,” he says.