BBVA has carried out this Tuesday a placement of non-preferred senior debt (SNP, for its initials in English) for a total of 2.3 billion dollars —equivalent to 1.97 billion euros—, structured in three tranches, according to the entity itself.
The market appetite has been high: the final order book has reached a demand close to 7.2 billion dollars —about 6.16 billion euros— and around 275 orders, more than three times the volume finally issued.
The operation has been distributed in three differentiated tranches. Two of them mature in three years: one at a fixed rate for 1 billion dollars —slightly more than 856 million euros— and another at a variable rate for 300 million dollars —close to 260 million euros—. The third tranche, also at a fixed rate, has a maturity of five years and has captured another 1 billion dollars.
The final cost of the two fixed-rate tranches has been positioned below the initial indicative levels. The three-year bond has been issued at 73 basis points over the yield of the benchmark U.S. Treasury bond, compared to the 100 basis points proposed at the beginning, with a coupon of 4.977%.
As for the five-year bond, it has been set at "'Treasury' benchmark plus 90 basis points," below the starting 115 basis points, with a coupon of 5.244%.
The variable-rate tranche, for its part, has been referenced to "SOFR (Secured Overnight Financing Rate) -the interest rate used in the dollar financing market- plus 89 basis points."
In relation to the placing entities, the entity chaired by Carlos Torres has indicated that the operation has been led by "BBVA, BMO, Citi, RBC Capital Markets, Société Générale and Wells Fargo."
This issuance is part of the BBVA Group's financing plan for 2026 and pursues two main purposes: refinancing computable emissions for the minimum requirement of own funds and eligible liabilities (MREL) —the regulatory framework that requires entities to have a minimum volume of resources capable of absorbing losses in case of crisis or resolution— and supporting the expansion of the credit portfolio.
The announced placement adds to the operations that BBVA has been carrying out in the debt markets throughout 2026. In January, the bank issued "2.000 million euros --1.700 million euros-- in another dual-tranche SNP issuance, in which it was its largest issuance in euros in the last 20 years." In February, "BBVA raised 2.500 million dollars --2.140 million euros-- from another issuance of non-preferred senior debt, the largest in its history in this currency." And in April, the group "closed 2.250 million dollars --1.930 million euros-- in a dual-tranche issuance."
Likewise, in June the entity carried out "1.250 million euros in a non-preferred senior green issuance" and "on June 16, the firm closed 2.250 million euros from a dual-tranche mortgage bond issuance; the first since 2023."