Garanti BBVA issues $500 million Tier 2 subordinated bond
BBVA’s Turkish franchise has successfully completed the issuance of a $500 million Tier 2 bond in the international markets. This marks the bank’s first such transaction in 2025, following a $750 million Tier 2 issue in November 2024.
The subordinated Tier 2 bond, issued under Basel III guidelines, has a maturity of 10.5 years and a call option after five and a half years. The coupon was reduced from an initial 8.75 percent to 8.25 percent. The order book reached $2 billion, four times the final issuance amount, underscoring continued investor confidence in both Garanti BBVA and Turkey’s broader financial stability.
Garanti BBVA CEO Mahmut Akten said the issuance reflects investor trust in the bank’s financial resilience and its standing in global capital markets. “The high demand achieved despite volatile conditions underscores Garanti BBVA’s financial strength and reputation. We remain committed to contributing to the Turkish economy in a manner that merits this confidence,” he said in a statement.
BBVA, BofA Securities, J.P. Morgan, BNP Paribas, Emirates NBD Bank PJSC, First Abu Dhabi Bank, MUFG Securities EMEA, and Standard Chartered Bank acted as joint bookrunners for the transaction.