BBVA places €1 billion in senior non-preferred debt, garnering 3x oversubscription
On Tuesday, 8 July, BBVA placed €1 billion in senior non-preferred (SNP) debt, with a five-year term maturing in 2030. Final demand amounted to €2.9 billion, before ultimately closing at €2.6 billion. The final price was set at mid-swap plus 85 basis points, significantly below the initial guidance of mid-swap plus 110 basis points, making it the lowest spread for an SNP achieved by a southern European financial institution in the past three years.
The issuance is part of the wholesale funding plan envisioned for 2025 and aims to bolster the bank’s pool of available instruments for complying with its MREL requirements. BBVA, Danske, NatWest Markets, RBC Capital Markets and UBS acted as bookrunners.
This marks BBVA S.A.’s third debt issuance in 2025. In January, the Group placed $1 billion in a contingent convertible bond (AT1 or CoCo) and in February, an additional €1 billion in Tier 2 subordinated debt.