Divestments

BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (€9.7 billion¹) in cash, an amount that represents 19.7 times the unit’s 2019 earnings², and that is almost 50% of BBVA’s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA’s fully loaded CET1 ratio of c.300 basis points, or €8.5 billion of CET1 generation.

BBVA continues making headway in its strategy to cut down its real estate exposure. BBVA has reached an agreement to sell its 25.24 percent stake in Testa to Blackstone for a total of €478 million.

After obtaining the pertinent regulatory authorizations, BBVA Group has closed the sale of its 68.19% stake in BBVA Chile and other companies in the country to Scotiabank, for a total of about $2.2 billion. The transaction will yield capital gains of about €640 million and will have a positive impact on BBVA’s fully-loaded CET 1 capital ratio of about 50 basis points.

Metrovacesa will make its debut on the Spanish stock exchanges on February 6, with a price of €16.5 per share. As part of the IPO process, the majority shareholders – Santander and BBVA – have sold 25.8% of Metrovacesa’s capital. BBVA placed a total of 11,619,724 shares, which represent 26.9% of its stake in the property company (7.7% of the share capital). The transaction is part of BBVA’s strategy of divestment in real estate holdings.

BBVA today announced an agreement with a subsidiary of Cerberus Capital Management, L.P. (Cerberus) to create a joint venture (JV) for its real estate business in Spain, reducing almost entirely its exposure to non core real estate assets. On the closing of the operation, BBVA will sell an 80% stake in the JV to Cerberus for about €4 billion. The transaction marks a milestone in BBVA Group’s strategy.

BBVA received a binding offer from The Bank of Nova Scotia (Scotiabank) for its 68.19% stake in BBVA Chile and other related businesses such as the life insurance arm for about $2.2 billion (1.85 billion euros)¹. The offer does not include the automobile financing activity of Grupo Forum, that will continue to be 100% owned by BBVA.

BBVA has sold one of the largest loan portfolios in the Spanish market to an affiliate of Cerberus Capital Management, L.P. The portfolio, which has a gross nominal value of nearly 600 million euros, consists of loans from real estate developments distributed throughout Spain, with the largest number in Andalusia, Madrid and Catalonia.

The agreement reached with Metrovacesa Suelo y Promoción (hereinafter Metrovacesa S.A), in which BBVA holds a stake, represents a significant step forward in the bank’s real estate strategy.  BBVA participated in a non-monetary capital increase, together with the other shareholders, through which the bank will transfer high-potential land holdings intended for housing developments valued at €431 million.

A bank’s markets division, also known as its Treasury, is part of its wholesale banking business. It is a highly specialized area that seeks to meet institutional and corporate customers’ investment and risk coverage needs. The retail banking area serves individual customers and also receives support from the markets area to design and manage products and manage the associated risks.