BBVA places $2.25 billion in a dual-tranche dollar issuance with demand nearly five times oversubscribed
BBVA has today placed $2.25 billion in a dual-tranche US dollar issuance: $1.0 billion in a contingent convertible bond (AT1 or ‘CoCo’) and $1.25 billion in a senior non-preferred (SNP) bond. Demand reached $11.0 billion, nearly five times the offer, representing the largest order book for a BBVA issuance in the past five years.
The final pricing for both tranches came in below initial guidance: the AT1 at 7.125% (versus an initial price of 7.5%)—the lowest spread for an AT1 issuance by a Southern European bank—and the SNP bond at 5-year U.S. Treasury plus 95 basis points (versus initial guidance of UST plus 125 basis points), the lowest spread for a Southern European bank in USD.
This issuance is part of BBVA’s 2026 funding plan and aims to increase the share of its U.S. dollar fixed income portfolio. In February, BBVA placed 2.5 billion dollars in another senior non-preferred debt issuance, the largest in its history in this currency. Thursday’s transaction is BBVA’s third debt issuance this year. In January, the bank placed 2 billion euros in another dual-tranche SNP issuance, its largest euro issuance in the last 20 years.