BBVA to issue senior preferred debt with 2026 maturity
BBVA issued senior preferred debt with a seven year maturity today. The bond will mature on November 15, 2026 and has an initial interest rate of MS+ Low70s. The underwriting banks are BBVA, BNP Paribas, Bank of America, ING, J.P. Morgan and Unicredit.
The aim of today’s issuance is to replace the a €1 billion senior preferred debt issuance that matures in October 2020. For MREL purposes, all issuances maturing in less than one year are not calculated. Therefore, this bond issue will not be calculated in MREL as of October 2019. The bond was issued under Spanish legislation and will be listed on Ireland’s stock exchange.
This is the first senior preferred debt issuance since April 2017, when BBVA sold €1.5 billion with a floating coupon rate of 3-month euribor + 0,60%.
In 2019, BBVA’s public issues include: two €1 billion contingent convertible bonds (CoCos), three €1 billion non-preferred bonds and one €0.75 billion Tier 2 subordinated debt.
