BBVA Issues €1 Billion in a Contingent Convertible Bond (CoCo)
BBVA placed €1 billion in a contingent convertible bond (known as CoCo or AT1) in euros this Monday, with demand reaching more than €5.250 billion. The issue price was set at 5.625 percent, significantly lower than the initial price guidance of 6.125 percent.
The bond issued today has a redemption window in November 2032. This issue is part of the bank's wholesale financing plan for 2025 and aims to strengthen the Group's AT1 hybrid capital.
The bookrunners for the transaction were Barclays, BBVA (as lead manager and B&D), Bank of America, Crédit Agricole CIB, JPMorgan, and UBS.
In 2025, the Group carried out the following issuances: a $1 billion contingent convertible bond in January, a €1 billion Tier 2 subordinated debt issue in February, €1 billion in senior non-preferred debt in July, and a €1 billion green senior non-preferred bond.