Garanti BBVA issues $2.45 billion in subordinated bonds in two years
BBVA’s Turkish unit has completed a new $700 million Basel III‑compliant Tier 2 issue, taking its subordinated bond sales over the past two years to $2.45 billion, the largest recent total among banks. Strong demand and competitive pricing underscored international investor confidence.
The four transactions were $500 million in February 2024, $750 million in November 2024, $500 million in June 2025 and $700 million in October 2025.
Garanti BBVA CEO Mahmut Akten attributed the success to the bank's robust capital structure and the confidence of international markets in both Türkiye and Garanti BBVA. He noted that the transactions, marked by strong investor demand, reflected the bank's effective capital management and long-term growth strategy. Akten reaffirmed the bank's commitment to using subordinated debt instruments to support sustainable growth and enhance its presence in capital markets.
Garanti BBVA's latest issuance, a $700 million fixed-rate bond maturing on April 15, 2036, with a 10.5-year tenor, drew robust demand of around $1.8 billion. The bond, which can be called between January 15, 2031 and April 15, 2031, carries a coupon rate of 7.625 percent. The successful issuance further underscored the bank's strong balance sheet, effective capital planning, and long-term success in investor relations.