BBVA went to market this Wednesday with a €750 million Tier 2 subordinated debt issue, maturing in September 2033 and with a three-month daily call option period between June and September 2028. The pricing was finally set at midswap plus 280 basis points. This was significantly below the initial pricing of midswap plus 305 basis points. Demand was high: €1.6 billion, and more than 130 orders. The bookrunners were BBVA, BNP Paribas, ING, JP Morgan and Unicredit.
This issue is part of BBVA's funding plan for 2023 and aims to strengthen the Tier 2 ratio. It is the first time the bank has issued this type of debt since 2020.
This is BBVA's fourth debt issue in 2023. In January 2023 it issued one billion euros in senior non-preferred debt with a term of eight years and another 1.5 billion euros in covered bonds with a term of 4.5 years. In May, it issued one billion euros in three-year senior preferred bonds.