Abu dhabi: Alt©rra, one of the largest private investment vehicles for climate finance globally, and BBVA, a leading global financial institution, have announced a new partnership, with BBVA committing $250 million as a proposed strategic limited partner to a climate co-investment vehicle that ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA plans to launch, pending regulatory approvals.
According to Emirates News Agency, this partnership underscores BBVA's recognition of and interest in ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA's unique strategy and capabilities, supporting BBVA's goals to advance its sustainable finance strategy and its growing interest in the Middle East. The fund, once launched and approved, will be domiciled in Abu Dhabi Global Market (ADGM) and will consolidate existing co-investments from ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA Acceleration into a dedicated structure managed by ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA. This represents a pivotal step in ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA's growth phase transition.
The ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA Opportunity Fund will pursue a diversified global investment strategy across climate-aligned infrastructure, private equity, and private credit. It reflects ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA's investment approach, seeking superior risk-adjusted returns and positive climate impact in both advanced and emerging markets. The fund aims to invest in climate investments across energy transition, industrial decarbonisation, climate tech, and sustainable living, with a scope that includes North America, Latin America, Europe, and other growth markets.
The strategic partnership was announced by Dr. Sultan Al Jaber, Chairman of ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA, and Carlos Torres Vila, Chair of BBVA, during Abu Dhabi Sustainability Week. Dr. Al Jaber highlighted the significance of this fund as a new chapter for ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA, enhancing its capability to mobilize and deploy global capital toward high-impact investments. Vila emphasized the alignment of this partnership with BBVA's strategy to make sustainability a key driver of differential growth globally and to expand their presence in climate finance hubs like Abu Dhabi.
BBVA has maintained a long-standing presence in Abu Dhabi through its Representative Office, established in 2013, underscoring the bank's interest in the Middle East as a strategic region for its Corporate and Investment Banking activities. The region's growing importance in global markets makes it a crucial area for BBVA as it seeks to accompany institutional clients and corporations with a global footprint.
This interest has advanced significantly with the recent In-Principle Approval from ADGM's Financial Services Regulatory Authority for the opening of a new BBVA branch in Abu Dhabi. This branch will enable the bank to expand its wholesale banking offerings in the region and strengthen its ability to serve corporate and institutional clients locally, connecting them with BBVA's international network.
By becoming an anchor investor in ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA's new climate fund, BBVA deepens its relationship with one of the Middle East's most influential investors, supporting the bank's strategy to enhance its presence and visibility in the region while fulfilling its sustainability ambitions. BBVA aims to channel £700 billion into sustainable business between 2025 and 2029, having already met its previous £300 billion target one year ahead of schedule. In addition to this $250 million investment in ALT€š¬…¡¬‚¬¦¡¬‚¬Å¡¬¦¡¬‚¬Å¡¬€¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬¦¡¬‚¬Å¡¬€¦¡¬€š¬¦¡¬€š¬…¡¬¦¡¬¦¡¬°RRA, BBVA has invested approximately £300 million in climate funds focused on decarbonisation as part of its global climate strategy.