MUFG has signed the first-ever successful blockchain-based syndicated loan pilot for Red Electrica Corporation, alongside BBVA and BNP Paribas.
The €150 million syndicated loan for Red Electra Coporacion, Spain's national electrical grid operator, used BBVA's proprietary blockchain powered platform, which delivers a better experience for clients, and minimizes operational risk.
Blockchain technology can ultimately improve the customer experience because it guarantees the negotiation's traceability, integrity and transparency since every step given in the negotiation is recorded on a private blockchain associated with the platform.
Since all communications are registered and mandatorily executed within the platform, the operational risk is reduced and the efficiency of the process is increased.
Once the contract was signed, the network recorded a unique document identifier to guarantee its immutability against third parties while safeguarding its confidentiality at all times.
BBVA was the sole bookrunner on the transaction, with MUFG and BNP Paribas acting as Mandated Lead Arrangers.
Daniel Tirado, Relationship Manager for Global Corporate Banking in Spain, said:
"This has been an excellent opportunity for MUFG to build on its long legacy in innovative banking, continue supporting our corporate clients with the most innovative financing solutions, and to demonstrate that financial institutions are capable to adapt, evolve and embrace new technologies."