February 24 (Renewables Now) - Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) and Spanish lender CaixaBank SA (BME:CABK) have signed the first sustainable factoring agreement in Spain.
The Siemens-CaixaBank operation comes with sustainability and environmental, social and corporate governance (ESG) criteria that allow the turbine manufacturer to improve the conditions of the factoring it pays to the Spanish bank according to its sustainability rating.
At the same time, Siemens Gamesa's EUR-1-billion (USD 1.08bn) guarantee facility agreement was turned "green". The company uses this facility to conduct its overall production and selling of onshore and offshore wind turbines.
The bank explains "factoring" as a short-term financing method that enables companies to get invoice payments in advance by transferring their accounts receivable to a financial institution.
Coverage for the insolvency of assigned invoices as well as improving the financial ratios of the balance sheet are services normally included in factoring, CaixaBank pointed out.
(EUR 1 = USD 1.085)