BBVA issues three-tranche senior non-preferred bond in US dollars
BBVA returned to the market on Wednesday with a three-tranche senior non-preferred bond issue in US dollars. The first tranche has a three-year maturity (2029) and an initial price guidance of IPT + 125 basis points. The second tranche, also maturing in 2029, carries a floating interest rate linked to the SOFR benchmark. The third tranche, with a 10-year maturity, has an initial price guidance of IPT + 160 basis points. The joint bookrunners are BBVA, Crédit Agricole CIB, HSBC, JP Morgan, Mizuho and UBS.
This issue brings forward part of the BBVA Group's 2027 funding plan and aims to strengthen its buffer of eligible liabilities to meet the MREL requirement.
This is the Group's tenth debt issue this year. In January, the bank placed €2 billion in a dual-tranche SNP issue, its largest euro-denominated issue in the past 20 years. In February, BBVA placed $2.5 billion in another senior non-preferred debt issue, its largest ever in this currency. In April, it placed $2.25 billion in a dual-tranche issue, comprising $1.25 billion in SNP debt and $1 billion in AT1 instruments. In June, the bank placed €1.25 billion in a senior non-preferred green bond issue and €2.25 billion in a dual-tranche covered bond issue, its first since 2023. In August, it placed $2.3 billion in a SNP three-tranche issue. In September, it placed a further €1.25 billion in a senior preferred green bond and £600 million in a senior non-preferred bond. On November 3, the Group placed 390 million Swiss francs in a dual-tranche senior preferred green bond issue.