BBVA has completed the placement in the markets of $2.05 billion, equivalent to about €1.952 billion at the current exchange rate, through a non-preferred senior bond split into three tranches: two at fixed rate, with maturities of 3 and 10 years, and a third at floating rate for 3 years, as the financial institution has reported. Investor demand has reached almost five times the amount finally offered.
In the first tranche at fixed rate, with maturity in 2029, the bank has allotted $750 million, about €714 million.
The second tranche, also with maturity in 2029 but referenced to a variable interest rate linked to the SOFR index, has reached $300 million, close to €286 million.
The third tranche, with a term of 10 years and a fixed coupon, was closed for an amount of $1.000 billion, around €952 million.
The tranches issued at fixed rate have recorded an average yield located 27 basis points below the initial level of launch to the market. The placement was led by BBVA itself and additionally included the participation of Crédit Agricole CIB, HSBC, JP Morgan, Mizuho and UBS as placing entities.
This issuance falls within the advance of the BBVA Group’s financing plan for 2027 and aims to strengthen the buffer of eligible liabilities of the entity in order to meet the MREL requirement.
Tenth debt placement so far this year
With this new operation, the banking group already adds its tenth debt issuance in the current financial year.
The issuance program began in January with the placement of €2.000 billion in a non-preferred senior (SNP) double-tranche issuance, the largest in euros for the entity in the last twenty years.
In February, the bank returned to the market with $2.500 billion, about €2.381 billion, in non-preferred senior debt, the highest figure in its history in this currency.
Subsequently, in April, the company raised $2.250 billion, around €2.143 billion, through a double-tranche issuance that combined $1.250 billion, €1.190 billion, in SNP format and $1.000 billion, €952 million, in Additional Tier 1 (AT1) capital instruments.
In June, BBVA carried out two additional operations: a senior non-preferred green issue for €1.250 billion and another of dual-tranche mortgage covered bonds for €2.250 billion, the first of this type since 2023.
In August, the bank maintained its activity in the capital markets with the placement of US$2.300 billion, about €2.190 billion, structured in three tranches.
Already in September, the entity issued €1.250 billion in a preferred senior green bond and £600 million, close to €719 million, in a senior non-preferred bond.
Lastly, on November 3 of last year, the group closed an issue of 390 million Swiss francs, around €417 million, through a preferred senior green bond structured in two tranches.