BBVA issues a senior non-preferred green bond worth €1 billion, with oversubscription of nearly €3 billion
This past Wednesday, BBVA issued a 10-year senior non-preferred (SNP) green bond worth €1 billion and maturing in 2035. Demand for the bond peaked at €2.9 billion, reflecting strong investor appetite for green-labelled instruments. At the close of the issue, the price was set at mid-swap plus 108 basis points, significantly below the initial guidance of mid-swap plus 135 basis points, making it the lowest spread achieved on a 10-year SNP by a Southern European financial institution since 2021.
The bookrunners were BBVA (B&D), BNP Paribas, IMI – Intesa Sanpaolo, Natixis and Nomura. The issuance is part of the wider wholesale funding plan for 2025 and aims to fortify the bank’s eligible instruments to meet its MREL requirements.
This latest bond is BBVA S.A.’s fourth debt issuance in 2025. In January, the Group issued $1 billion as an Additional Tier 1 (AT1 or CoCo) contingent convertible bond; in February, it placed a further €1 billion as a Tier 2 subordinated debt issuance; and in July—just a month ago—the bank issued another €1 billion in senior non-preferred debt.