Issuances

The EIB Group (European Investment Bank and European Investment Fund) has invested €377 million in the ¨BBVA Consumer 2024-1¨ securitisation fund. This investment will enable BBVA to channel nearly €800 million into the real economy to finance energy efficiency projects and new mortgages for highly energy-efficient homes. The operation also includes financing for projects to boost the competitiveness of small and medium-sized enterprises (SMEs) and mid-caps in Spain.

On Wednesday of this week, BBVA placed €1.25 billion in a 12-year Tier 2 subordinated debt issue, with a call option at seven years. The market response has been excellent, with demand reaching nearly €6 billion, five times the amount ultimately allotted. The price was set at mid swap + 240 basis points, significantly below the starting price (mid swap + 275 basis points).

BBVA in Colombia has reached an agreement with Isagen to convert long-term finance of 368 billion pesos to sustainable loans linked to compliance with an environmental indicator. The index measures carbon emissions intensity in relation to energy generation as part of a pledge made by the power generation company to help preserve a more sustainable world.

Colombia has just launched an international bond issue in dollars with the aim of advancing financing for 2023 and improving the country's public debt profile. BBVA was one of the entities participating in the placement, which matures in 2034.

This Tuesday, BBVA launched an 8-year senior non-preferred debt issue, maturing in January 2031, with a redemption option in the seventh year. The exit rate is MS+190/195bps. This is the Group's first issue in 2023.

BBVA placed €1.25 billion in a green bond issue of senior preferred debt today, with a seven year maturity. The issue price was set at mid-swap plus 155 basis points, below the initial target price (mid-swap plus 175-180 basis points). This is the Group’s first bond issue with a “green” seal for senior preferred debt and the largest with this label for a Spanish financial issuer.

BBVA today placed a 6-year €1 billion senior preferred debt issue, with maturity in March 2027, and an option for early redemption after five years. Final demand exceeded the initial offer 1.5 times, up to more than €1.5 billion, spread over 125 orders. The interest rate was mid-swap + 52 basis points, below the estimated exit rate of mid-swap + 70-75 basis points.

BBVA Mexico reports that it successfully concluded the issuing of $500 million of unsecured senior notes in international markets, with a five year maturity and an interest rate of 1.875 percent.

MAPFRE has strengthened its life-savings insurance product portfolio with the launch of Unit Linked Valor Activo III. The product is linked to the performance of the Eurostoxx index and to a BBVA social bond. The bank will devote the proceeds to fund social projects. With this new operation, BBVA is supporting the Spanish insurance company’s efforts in broadening its sustainable commercial offering.

Today BBVA launched an issuance of senior non-preferred debt in Switzerland. It is the first time the bank has issued debt in the alpine country. The deal closed at 160 million Swiss francs (around €150 million), well above the initial offer of CHF 150 million (around €140 million).

The new year kicked-off with a deluge of corporate issuances. Last week Europe’s bond market had its biggest week ever, with sales of new bonds totaling over €90 billion. Financial institutions accounted for approximately half of the total (€43 billion). BBVA issued two bonds that were warmly welcomed by investors.

BBVA's Turkish unit builds on years of proven responsible banking and a commitment to the communities it serves by issuing a 5-year $50 million green bond.

BBVA has returned today to the markets with an issuance of 1,000 million euros of senior debt with maturity in November 2026. Demand has exceeded 2.4 times the initial offer, which has allowed reducing the initial price indication by around 20 basis points, to mid swap plus 52 points. The coupon was 0.375%, a historical minimum reference for a seven-year preferred debt issue. No issue premium has been paid, which demonstrates the quality of the price reached.

BBVA issued a $1 billion contingent convertible bond (CoCos), with demand exceeding by almost eight times the initial offer ($7.8 billion) and more than 410 orders from investors. High demand for the issuance allowed it to close at a very attractive price, with a coupon of 6.5 percent in dollars (0.50 basis points below the initial price of 7 percent), which is equivalent to a 4-percent coupon in euros.

BBVA – with Deloitte and PCS acting as independent third parties – has completed the first issuance of securitized bonds in Spain, which will be registered with the ESMA (European Securities and Markets Authority) as Simple, Transparent and Standardized (STS).  With this securitization, BBVA takes advantage of European regulation in force since January 1 that will confer preferential capital treatment to financial institutions issuing STS securitizations.

The green bond BBVA issued in May 2018 has helped reduce CO2 emissions by 274,609 tons since its launch in May 2018, with another 106,539 tons estimated for 2019. It also generated 558 GWh/year of renewable energy. The bank has allocated one billion euros obtained from wholesale markets to finance renewable energy and sustainable transportation projects, according to the first bond monitoring report the BBVA Group recently published.

After placing €750 million of subordinated debt last Thursday, BBVA has returned to wholesale markets with a €1 billion issue of senior non-preferred debt. Demand exceeded the initial offer by three and half times, making it possible to reduce the initial price (mid swap price +130 basis points) by 23 points.

BBVA Group unit Garanti Bank in conjunction with the World Bank’s International Finance Corporation (IFC) has issued a six-year social bond worth $75 million dollars to help finance women entrepreneurs in Turkey.

On Tuesday, BBVA entered the markets with a €1.5 billion issue of Senior Non-Preferred Debt (SNP) with a five-year term and a Floating Rate Note format. Thanks to strong investor demand, the issue closed with a coupon of three-month Euribor plus 52 basis points. The operation was the lowest-priced issue of senior non-preferred debt by a Spanish issuer.

Economist William Nordhaus received the BBVA Foundation Frontiers of Knowledge Award in Climate Change for developing the first model capable of integrating economic and environmental data to identify the most efficient policies against global warming.

BBVA has joined a group of 14 banks that have made a commitment to the United Nations Environment Programme – Finance Initiative (UNEP-FI) to implement the recommendations on financing and climate change published by the Financial Stability Board in July in the framework of the G20.

Garanti Bank signed an agreement with the European Bank for Reconstruction and Development (EBRD) for 5-year term funding in the amount of Euro 75 million equivalent under the Covered Bond Programme. Thanks to this financing, the first transaction settled with EBRD in TL and covered bond format, Garanti aims to boost the expansion of Green Mortgage loans and to protect the future generations with environmentally-friendly buildings.

BBVA’s has issued perpetual debt eventually convertible into shares at the cheapest price of all operations launched by Spanish issuers for this type of product. The issuing of €500 million of contingent convertible bonds, or 'CoCos' (also known as AT1) took place at a very attractive price, with a coupon of 5.875%.

Customer deposits are the principal source of liquidity for retail banks. But they also go to the capital markets, through debt issues. In this way, the banks can obtain financing and also meet the requirements of an increasingly demanding regulation. Depending on their characteristics, these issues are more or less similar to shares, which means that they also have priority when losses are taken, in the event the financial institution were to go bankrupt

S&P changed its outlook for BBVA’s long-term rating (BBB+) from stable to positive. The agency once again highlighted the Group’s strong financial profile, resilient profitability levels and solid capital position.

BBVA on April 3 announced the successful placement of €1.5 billion five-year preferred senior debt with a floating coupon rate. High demand, about €3.25 billion, allowed the price to be cut to very competitive levels, without an issue premium. The order book closed in just two hours, drawing 260 international investors

Last Thursday, BBVA launched its first public debt issue of 2017: A 1 billion euro 5-year senior unsecured bond. The bank completed the transaction with the lowest coupon in history (0.625%) for this type of product, with this maturity, for a Spanish issuer.

Europe has taken a giant leap forward to keep taxpayers from footing bailout bills in the future. Last week, the European Commission unveiled a regulatory package which, among other measures, envisaged the revision of the resolution framework for institutions. The proposal represents a new leap towards the goal of ensuring that banks allocate the right amount of resources to absorb eventual losses, even bail-out themselves, without resorting to public funding. It will also help European banks boost the amount of high-quality capital in their balance sheets.