Vidrala Group, leading producer of glass containers for the food and beverage industry, has signed with the Spanish bank BBVA its first interest rate swap (IRS) agreement linked to sustainable criteria, a pioneering financial product in the derivative market.
IRS are a product class that help companies manage and cover risks related to interest rates and exchange rates, which are part of business’ day to day operations. However, Vidrala and BBVA have gone one step further by formalizing a sustainable version of this product.
Vidrala has linked the contractual conditions of this IRS to a particular goal meant to reduce CO2 emissions. In this regard, the fees it will have to pay as part of the IRS agreement vary depending on the achievement of the established key performance indicator (KPI).
In case Vidrala fails to achieve the expected carbon footprint reduction, it will face a penalty that will be assigned to reforestation project “Tree Planting in Tanzania”, led by ForestNation.