BBVA raises €1.5 billion with a 4.5-year covered bond issue
BBVA launched a 4.5-year covered bond today, which raised proceeds of €1.5 billion. The initial offered pricing (mid-swap rate plus 32 basis points) was lowered to the mid-swap rate plus 27 basis points thanks to strong demand of €3 billion. The issue will be listed on the Madrid market under Spanish law. This is the bank’s first issuance of this kind of debt since November 2016.
The rationale for the covered bond issue—a part of the 2023 funding plan—is to suitably manage the balance sheet and regulatory liquidity coverage ratios in light of the European Central Bank's TLTRO repayment calendar. The underwriters are BBVA, Commerzbank, Helaba, HSBC and Natixis.
This is BBVA's second debt issue in 2023. On January 3, the bank placed an 8-year senior non-preferred debt issue.
In 2022, BBVA launched a total of six public debt issues: a senior non-preferred debt issue for a total of €1.0 billion; a senior preferred debt issue, in two tranches, for a total volume of €1.75 billion; another senior non-preferred debt issue in two tranches, issued in dollars; a senior preferred debt issue for €1.25 billion; and two ‘green’ issues, one senior preferred bond in October, which raised €1.25 billion, and another in November, a senior preferred bond that raised 425 million Swiss francs.