BBVA Launches a Dual-tranche Dollar Issuance: AT1 and Senior Non-Preferred
BBVA launched a dual-tranche dollar issuance this Thursday. The first tranche is a contingent convertible bond (AT1 or ‘CoCo’) and the second is a senior non-preferred (SNP) bond. The AT1 issuance has a seven-year call date and an initial price of IPT plus 750 basis points. The SNP issuance has a five-year maturity and an initial price of IPT plus 125 basis points. The joint bookrunners are Barclays, BBVA, BNP Paribas, BofA Securities, J.P. Morgan, TD Securities and UBS.
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.