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To target investments linked to low-carbon transition

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BBVA to invest $200 million in KKR's Global Climate

Strategy

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Will also seek climate-related infrastructure investments

By Simon Jessop

NEW YORK, Sept 27 (Reuters) - Spanish lender BBVA

and U.S. investor KKR said on Friday they had

formed a strategic partnership focused on investments linked to

the world's climate-driven transition to a low-carbon economy.

BBVA will invest $200 million in KKR's Global Climate

Strategy, the companies said in a joint statement during New

York Climate Week, and the initiative will also look into

finding climate infrastructure-related investments.

"We are confident that the second part of this decade will

see strong growth of new low-carbon infrastructures. It is an

immense opportunity, said BBVA's global head of sustainability

and corporate & investment banking at BBVA, Javier Rodriguez

Soler.

The KKR tie-up will be a "key piece" of the bank's

sustainability strategy, he added, as it seeks to become a

leader in finance and advisory services to clients in the U.S.

and Europe.

"With KKR's proven experience in this area, we will share

knowledge across our teams, capabilities and efforts in this

strategic alliance in order to multiply investments in

infrastructure and climate projects," Soler said.

BBVA said sustainability is one of its six strategic

priorities, helped by a global financing unit specialising in

clean technology innovation with offices in New York, London,

Madrid and Houston.

To date, KKR has made three investments from its climate

strategy, including in UK-based transport electrification and

battery storage solutions provider Zenobe and U.S. utility-scale

solar and solar-plus-storage developer Avantus.

"We are still in the early innings of what will be a

multi-decade transition to net zero (carbon emissions), which is

one of the biggest investment opportunities of our time and

requires participation from across the financial sector," said

Emmanuel Lagarrigue, co-head of KKR's global climate strategy.

"We are delighted to collaborate with BBVA given their

industry-leading presence within the renewables sector and their

deep commitment to mitigating the impacts of climate change."