BBVA places €1.75 billion of senior preferred debt, with the issue 2x oversubscribed
BBVA tapped the market this Wednesday with a €1.75 billion senior preferred debt issue, structured in two tranches. Demand was double the final placement, with orders reaching €3.5 billion. The first tranche, with a three-year maturity (June 2027), closed at a rate of three-month Euribor +45 basis points (versus an initial price of three-month Euribor +70 to 75 basis points). The second tranche, with a six-year maturity (June 2030), closed at the mid-swap rate + 75 basis points, versus an initial price of mid-swap + 100 basis points.
This debt issue is part of BBVA’s financing plan for 2024. The bookrunners include BBVA, Bank of America, Credit Agricole-CIB, Citi, Lloyds and Nomura.
BBVA has issued debt on five other occasions in 2024: two issues of preferred and non preferred senior debt issued in dollars, each of $1 billion; an issue of Tier 2 subordinated debt worth €1.25 billion; a further €1.25 billion of senior preferred debt; and a senior preferred green bond totaling €1 billion.