BBVA came to the market this Tuesday with a new issuance of a contingent convertible bond ('CoCo' or AT1) denominated in euros, which includes a call option on October 18, 2034, as the Basque entity has communicated.
The note starts with a fixed coupon of 7.125%, but if the redemption is not exercised on the scheduled date, it will then begin accruing a floating interest rate referenced to the five-year 'mid swap' index, to which a spread that is yet to be specified will be added.
As for the entities in charge of the placement, the operation was coordinated by Barclays, BBVA, Bank of America, Deutsche Bank and Natixis. At the same time, the bank emphasized that this issuance forms part of the advance of the BBVA Group’s financing plan for 2027 and pursues as its main purpose “to strengthen the AT1 liabilities buffer”.
BBVA’s eleventh debt transaction in 2026
With this new CoCo, the group already adds eleven debt issuances so far in 2026. The program began in January with a placement of 2,000 million euros in non-preferred senior debt (SNP) in a double tranche, the bank’s largest euro operation in the last twenty years.
In February, BBVA once again went to the market with 2,500 million dollars (about 2,381 million euros) in non-preferred senior debt, the largest volume issued by the entity in this currency.
Later, in April, the bank obtained 2,250 million dollars (about 2,143 million euros) through a double tranche issuance that combined 1,250 million dollars (1,190 million euros) in SNP format and 1,000 million dollars (952 million euros) in Additional Tier 1 (AT1) capital instruments.
In June, BBVA carried out two new placements: a green non-preferred senior issuance for 1,250 million euros and another double-tranche issuance of mortgage-backed notes for 2,250 million euros, the first operation of this type since 2023.
In August, the entity maintained its presence in the markets with an issuance of 2,300 million dollars (around 2,190 million euros) structured in three tranches.
In September, the bank placed 1,250 million euros in a preferred senior green bond and 600 million pounds sterling (around 719 million euros) in a non-preferred senior bond.
Finally, in November, the group closed an issue of 390 million Swiss francs (around 417 million euros) through a preferred senior green bond in two tranches, together with another placement of 2,050 million dollars (1,825 million euros) in a non-preferred senior bond distributed in three tranches.