BBVA launches a new Tier 2 subordinated debt issue worth €1 billion
BBVA tapped the market today with a Tier 2 subordinated debt issue totaling €1 billion, maturing in 12 years and featuring a redemption option from year seven. The issue has been very well received, with demand exceeding €3 billion at times, tripling the amount ultimately allotted. The price was set at mid swap + 200 basis points, below the starting price (mid swap + 225 basis points). It is the bank’s seventh wholesale transaction this year.
The new issue marks the completion of BBVA’s financing plan for 2024, which is designed to make the bank’s capital structure more efficient.
The bookrunners are BBVA (B&D), ING, JPM, UBS and UniCredit.
BBVA's seventh wholesale transaction in 2024
In 2024, BBVA launched six other debt issues: a senior senior preferred debt issue structured in two tranches, with a volume of €1.75 billion; a dual senior senior preferred and non-preferred U.S. dollar debt issue, each with a volume of US$1 billion; a Tier 2 subordinated dent issue, worth €1.25 billion; a senior preferred debt issue with a volume of €1.25 billion; a preferred senior green bond with a volume of €1 billion; and finally a contingent convertible bond (termed ‘CoCo’ or ‘AT1’) worth €750 million.