BBVA issues a contingent convertible (CoCo) bond worth €750 million
BBVA tapped the market today with a euro-denominated contingent convertible (known as a CoCo or AT1) bond, attracting demand of €3.5 billion. The issue price was set at 6.875 percent, well below the 7.375 percent starting price.
Today’s bond issued has a redemption window running from December 2030 through June 2031. This bond issue is part of the bank’s wholesale financing plan for 2024 and aims to reinforce its AT1 hybrid capital. The bookrunners for the issue are BBVA, Barclays, BNP Paribas, Citi, Deutsche Bank and UBS. BBVA’s last CoCo bond issue was issued in dollars in September 2023.
In 2024, BBVA issued debt on five other occasions: a senior preferred debt issue structured into two tranches, for a total of €1.75 billion; a double senior preferred and non-preferred debt issue in dollars, in the amount of $1 billion each; a subordinated Tier 2 debt issue, for a total of €1.25 billion; €1.25 billion of senior preferred debt; and a senior preferred green bond for a total of €1 billion.
With this latest issue, BBVA has placed a total of €7.9 billion in the year to date, surpassing the 90% envisaged in the funding plan for 2024 (which involves issuing between €8 billion and €9 billion).