BBVA places $2.3 billion in a three-tranche issuance with demand exceeding three times the amount issued
BBVA closed a $2.3 billion senior non-preferred (SNP) debt issuance on Tuesday, structured in three tranches: two three-year tranches — one $1 billion fixed-rate tranche and a $300 million floating-rate tranche — and a third $1 billion fixed-rate tranche with a five-year maturity.
The transaction attracted strong investor demand, with a final order book of approximately $7.2 billion and nearly 275 orders, more than three times the amount issued.
The final pricing of the fixed-rate tranches came in below initial guidance: the three-year bond was priced at U.S. Treasuries plus 73 basis points, compared with initial guidance of 100 basis points, with a coupon of 4.977%; while the five-year bond was priced at U.S. Treasuries plus 90 basis points, versus initial guidance of 115 basis points, with a coupon of 5.244%. The floating-rate tranche was priced at SOFR plus 89 basis points.
The transaction is being led by BBVA, BMO, Citi, RBC Capital Markets, Société Générale and Wells Fargo as bookrunners.
This issuance forms part of the BBVA Group’s 2026 funding plan and is aimed at refinancing issuances eligible for MREL purposes and funding loan growth.
In January, the bank placed €2 billion in a dual-tranche SNP issuance, its largest euro-denominated issuance in the past 20 years. In February, it placed $2.5 billion in another senior non-preferred debt issuance, the largest in its history in this currency. In April, it placed $2.25 billion in a dual-tranche issuance, comprising $1.25 billion in SNP debt and $1 billion in AT1 securities. In June, the bank placed €1.25 billion in a green senior non-preferred issuance, and on June 16, 2026, BBVA placed €2.25 billion in a dual-tranche covered bond issuance, its first since 2023.