BBVA and the United Arab Emirates’ climate‑finance vehicle ALTERRA have announced a joint venture that will launch a $1.2 billion co‑investment fund, with BBVA committing $250 million of its own capital. The fund will be domiciled in Abu Dhabi Global Market and will pool third‑party capital with ALTERRA’s expertise to finance climate‑aligned projects across infrastructure, private equity and private credit worldwide.
The investment mandate focuses on four thematic areas—energy transition, industrial decarbonization, climate technology and sustainable living—across all regions. ALTERRA, which was launched at COP28 in December 2023 with a $30 billion UAE pledge and a goal of mobilizing $250 billion by 2030, will provide the strategic framework and network of institutional partners, while BBVA will supply local market knowledge and distribution channels in Europe and Latin America.
For BBVA, the partnership strengthens its ESG strategy and supports the bank’s 2025‑2029 goal of channeling €700 billion in sustainable finance. By adding a dedicated climate‑focused vehicle, BBVA can tap the growing demand for green infrastructure, generate attractive risk‑adjusted returns, and reinforce its position as a leading climate‑finance provider in the Middle East and beyond.
ALTERRA’s involvement signals the UAE’s commitment to mobilizing private capital for the low‑carbon transition. The partnership leverages the Abu Dhabi hub’s regulatory framework and the bank’s existing presence in the region, positioning the fund to attract global investors seeking exposure to high‑impact, long‑term climate assets.
Carlos Torres Vila, Chair of BBVA, said the collaboration “aligns with BBVA’s strategy to make sustainability a key driver of differential growth globally and to deepen our presence in fast‑growing climate‑finance hubs such as Abu Dhabi.” Dr. Sultan Al Jaber, Chairman of ALTERRA, added that the fund “marks a new chapter for ALTERRA as we move into our next stage of growth and deepen our ability to mobilise global capital toward high‑impact investments.”
The launch is subject to regulatory approvals in both jurisdictions. BBVA and ALTERRA expect the necessary clearances to be obtained within the next few months, after which the fund will begin deploying capital to projects that meet stringent climate‑alignment criteria and deliver risk‑adjusted returns to investors.
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