BBVA places €2.25 billion dual-tranche euro-denominated covered bond issuance
BBVA placed €2.25 billion in a dual-tranche euro-denominated covered bond issuance on Tuesday. In the first tranche, with a three-year maturity, BBVA placed €1.25 billion at a price of mid-swap + 14 basis points (compared with initial price guidance of mid-swap + 20 basis points). In the second tranche, with a seven-year maturity, BBVA placed €1 billion at a price of mid-swap + 27 basis points (compared with initial price guidance of mid-swap + 34 basis points).
Demand comfortably exceeded the initial offering, with the order book reaching €5.3 billion, almost double the amount ultimately allocated. The joint bookrunners were BBVA, Commerzbank, ING, Mediobanca and Natixis.
This is BBVA’s first covered bond issuance since 2023. Tuesday’s transaction is the group’s fourth debt issuance this year. In January, the bank placed €2 billion in a dual-tranche SNP issuance, its largest euro-denominated issuance in the last 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.