BBVA issues euro-denominated CoCo bond with call option in 2034
BBVA tapped the market on Tuesday with the issuance of a euro-denominated contingent convertible bond (‘CoCo’ or AT1) with a call option on October 18, 2034. The bond carries a fixed interest rate of 7.125%, although, if not redeemed on that date, it would switch to a floating rate linked to the five-year mid-swap rate plus a spread to be determined. The bookrunners are Barclays, BBVA, Bank of America, Deutsche Bank and Natixis.
This issuance brings forward part of the BBVA Group's 2027 funding plan and aims to strengthen its AT1 capital buffer.
This is the Group's eleventh debt issuance of the year. In January, the bank placed €2,000 million in a dual-tranche senior non-preferred (SNP) debt issuance, its largest euro-denominated issuance in the past 20 years. In February, BBVA placed $2,500 million in another senior non-preferred debt issuance, the largest in its history in this currency. In April, it placed $2,250 million in a dual-tranche issuance, comprising $1,250 million in SNP debt and $1,000 million in AT1 debt. In June, the bank placed €1,250 million in a senior non-preferred green bond issuance and €2,250 million in a dual-tranche covered bond issuance, its first since 2023. In August, it placed $2,300 million in a three-tranche issuance. In September, it placed a further €1,250 million in a senior preferred green bond and £600 million in a senior non-preferred bond. In November, the Group placed CHF 390 million in a dual-tranche senior preferred green bond issuance and $2,050 million in a three-tranche senior non-preferred bond issuance