Spanish Banks Pioneer Blockchain-Managed €150 Million Syndicated Loan
Iberdrola, BBVA, and Santander have launched a €150 million corporate syndicated loan, entirely managed on distributed ledger technology (DLT). This marks the first live syndicated loan with its full lifecycle, from execution to maturity, running on blockchain.
The facility, developed by ioBuilders with support from both banks, aims to streamline syndicated financing. Rob Kay, Global Head of Investment Grade and Emerging Markets Debt at Santander Corporate and Investment Banking, stated, This transaction represents an important step forward in the evolution of syndicated financing, demonstrating how DLT-based technologies can bring greater efficiency, transparency, and traceability to complex financial processes.
How DLT Simplifies Syndicated Loans
In traditional syndicated loans, the agent bank, lenders, and borrower maintain separate databases that require constant reconciliation. The ioBuilders platform replaces this with a single, immutable record shared by all participants, reducing operational errors and improving traceability.
The platform handles interest calculations, notifications, principal payments, and early repayments. Carlos Matilla, CEO of ioBuilders, noted, The technology underpinning this platform opens the door to more efficient management of financial institutions’ balance sheets, enabling new strategies for loan mobilization in the secondary market.
Industry Collaboration and Future Potential
The deal sets the stage for a collaborative industry model, aiming to reshape corporate financing. Alberto Falco notes the product’s historical inaccessibility for most companies. By combining DLT’s immutable records with smart contracts, the platform automates processes, creating a foundation for broader institutional participation.
Targeting a Market Ripe for Digitalization
Syndicated lending is a critical segment of corporate finance but has long been burdened by administrative complexity and coordination challenges. The new platform aims to address these issues by automating processes and providing real-time visibility for authorized participants.
Alberto Falco, Head of Portfolio Monitoring and Innovation at BBVA, highlighted the transformative potential: Blockchain technology enables a particularly significant transformational leap in syndicated loans, a product that has traditionally seen limited digitalization and has been accessible to very few clients.
Key Players and Their Roles
BBVA, a Spanish multinational bank with blockchain lending experience since 2018, joins Santander as a lender on the Iberdrola facility. Both banks jointly supported the platform’s development. ioBuilders, a fintech specializing in DLT infrastructure, will work with Santander to onboard additional lenders.
Iberdrola, a Spanish multinational utility, is the borrower on the €150 million facility.
