BBVA places $2 billion in a senior debt issue in two tranches with three times the demand
This Tuesday, BBVA placed US$2 billion in a senior debt issue structured in two tranches: a five-year senior 'preferred' bond and an 11-year senior 'non-preferred' bond. 1,000 million dollars have been placed in each tranche, thanks to a very high demand, which has reached 6,500 million dollars, thus tripling the final amount placed. The closing price in both sections has been very competitive. The senior preferred bond has closed at T+125 basis points (compared to an initial price of T+150 basis points), while that of the 'non-preferred' senior has been fixed at T+190 basis points, below the T+215 basis points of departure.
With this issue, BBVA has set the objective of accessing other markets, beyond Europe, in order to expand the investor base. The designated underwriters for the issue are BBVA Securities, Bank of America Securities (B&D), J.P. Morgan, Mizuho, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities.
This latest issue comes in SEC format (prospectus filed with the U.S. Securities and Exchange Commission), thus allowing BBVA to offer the securities to a broader investor base. This is the first time so far this year that BBVA has ventured into the US market.
This will be BBVA’s third issue in 2024. In January, the bank issued senior preferred debt worth a total of €1.25 billion with a 10-year maturity, followed by another issue in February of Tier 2 subordinated debt, for the same amount and with a 12-year maturity.
In November 2023, BBVA placed its second Tier 2 subordinated debt issue denominated in dollars, having already placed in September of that year a total of $1 billion in AT1 contingently convertible bonds, or ‘CoCos’, also denominated in dollars.