BBVA placed on Thursday a $2-billion issue of senior preferred debt filed with the U.S. SEC. The issue consists of two tranches, with a maturity of three and five years: The three-year tranche accounted for $1.2 billion, while the five-year one reached $800 million. Demand topped a maximum of $5 billion, with 210 orders, and the book closed with orders of $4.5 billion: $2.5 billion for the three-year tranche and $2 billion for the five-year tranche. Investors’ appetite allowed for the starting price to be set lower. The interest rate has been set at the U.S. Treasury rate plus 75 basis points spread for the three-year tranche (versus a starting spread of 100 bps) and a 100 bps spread for the five-year tranche (vs. a starting spread of 125 bps).

A bond is a debt instrument that companies issue in capital markets to attract financing from institutional investors (for example, investment funds). Banks also issue debt: it is a way of obtaining funds that they later use to grant loans to their clients. Along with customer deposits, issuances are, for banks, an additional source of financing to carry out their activity.

For the second time in a week, BBVA is tapping wholesale markets with a debt issue. In this case, it is a subordinated Tier 2 bond in pound sterling, with an 11-year maturity term and a six-year early amortization option. The issue closed raising £300 million at an initial coupon rate of UKT plus a spread of 315, the reference index for this type of issuance. On July 7, BBVA successfully completed the issuance of a €1 billion bond, the first green bond ever in AT1 format by a financial institution at international level.

BBVA successfully launched the first-ever green contingent convertible (CoCo) bond by a financial institution, worth €1 billion. The issue was oversubscribed by almost a factor of three, and the high-quality order book drew 225 orders. Strong interest from investors allowed the company to lower the yield from its initial guidance of 6.5 percent to 6 percent.

BBVA placed a €1 billion  inaugural COVID-19 social bond on the market today, making it the first private financial institution in Europe to do so. Demand was close to €5 billion, nearly five times more than the initial offer. The funds will be primarily allocated to mitigating the severe economic and social impact caused directly and indirectly by the COVID-19 pandemic. The interest rate was set at 112 basis points over mid-swap, 33 basis points below the initial target price (145 bps over mid-swap).

Today BBVA launched an issuance of senior non-preferred debt in Switzerland. It is the first time the bank has issued debt in the alpine country. The deal closed at 160 million Swiss francs (around €150 million), well above the initial offer of CHF 150 million (around €140 million).

The new year kicked-off with a deluge of corporate issuances. Last week Europe’s bond market had its biggest week ever, with sales of new bonds totaling over €90 billion. Financial institutions accounted for approximately half of the total (€43 billion). BBVA issued two bonds that were warmly welcomed by investors.

Today, BBVA placed €1 billion of Tier 2 subordinated debt on the market. The debt, maturing on January 16, 2030 has an interest rate of mid-swap plus 127 basis points, 28 basis points below the initial interest rate (mid-swap plus 155 points) and a 1% coupon. Demand for the issuance reached €4.2 billion, exceeding the opening offer by four times.

BBVA kicked off 2020 with a €1.25 billion non-preferred 7-year bond issue, the year’s first by a Spanish bank. The bond received a warm welcome from investors and was two-times oversubscribed, with demand exceeding €2.6 billion and drawing a high-quality order book. All this enabled BBVA to price the bond at 70 basis points over mid swap, compared to the initial guidance of 90 basis points.

BBVA issued a $1 billion contingent convertible bond (CoCos), with demand exceeding by almost eight times the initial offer ($7.8 billion) and more than 410 orders from investors. High demand for the issuance allowed it to close at a very attractive price, with a coupon of 6.5 percent in dollars (0.50 basis points below the initial price of 7 percent), which is equivalent to a 4-percent coupon in euros.

BBVA has issued a €1 billion contingent convertible bond (CoCo), which saw a demand of more than  three times the initial offer and received more than 250 orders. The high demand for the issue made it possible to set the final coupon rate at 6 percent, 0.375 points below the initially indicated price (6.375 percent).

BBVA has issued a €750 million 10-year Tier-2 subordinated bond.  A high demand of €4.25 billion – with 260 orders – exceeded by more than five times the bond value, making it possible to reduce the mid swap price +245 basis points, 30 basis points below the initial price. The order book closed in only three hours. The issue achieved the lowest ‘spread’ of a subordinated issue for BBVA since 2007.

BBVA has issued a €1 billion contingent convertible bond, or CoCo, (Additional Tier 1 or AT1) with a coupon of 5.875 percent, equaling its lowest-ever rate for this type of issue. High demand has allowed it to reduce the coupon by 50 basis points, from the initial 6.375 percent. This is a perpetual instrument (without a specific maturity date) over which the issuer reserves a call option in the fifth year.

BBVA today tapped the markets, issuing the largest ever green bond (€1 billion) by a eurozone financial institution. The 7-year non-preferred senior green bond makes BBVA the first Spanish bank to issue such debt instrument. High demand -three times higher than the bond’s value– allowed it to lower the price to mid-swap plus 80 basis points.

Today marks the second anniversary of death of David Bowie, a pop icon who needs no introduction. Hundreds of lines have been written about his life, career and concerts. But what many are not aware of is that Bowie was also a pioneer in the financial world: he was the first artist ever to issue a “celebrity bond.”

Positive market conditions and investor appetite have helped BBVA to get an excellent reception for its sixth issue of CoCos. The Group has issued a $1 billion bond, with the lowest coupon in dollars for an issuer from southern Europe (6.125%), and the longest maturity (perpetual, with a ‘call’ option starting in the tenth year). Registration of a prospectus with the U.S. Securities and Exchange Commission (SEC) has prompted a bigger participation from American, European and Asian investors.

The BBVA Group’s activity in the capital markets during 2017 has been nothing less than brilliant after having completed its latest issue of CoCo bonds in November.  During 2018, BBVA hopes to refinance the maturities of issues that are not eligible under EU norms, with Senior Non-Preferred debt. You can find all the information in the latest fixed income presentation.

Garanti Bank signed a residential mortgage covered bond agreement with IFC (International Finance Corporation), a member of the World Bank Group, with 5-year term maturity worth at USD 150 million equivalent to 540 million Turkish Lira. Garanti issued the first residential mortgage covered bond ever, which is IFC has invested the first time in Turkey as well. Garanti will use the fund to provide green mortgages for the purchases of energy efficient housing, helping to boost the development of green buildings in the country’s housing sector.

Moody´s ratings agency has confirmed its stable outlook for the Spanish banking sector. This reflects the agency´s view regarding the evolution of the sector over the next two years. Moody´s believes that GDP growth will allow financial institutions to continue improving their asset quality metrics, although at a slower pace than last year. Likewise, Moody´s expects that the profitability of the banks will be maintained throughout 2017-2018, since lower provisions will compensate for the pressure on margins due to low interest rates.

BBVA’s has issued perpetual debt eventually convertible into shares at the cheapest price of all operations launched by Spanish issuers for this type of product. The issuing of €500 million of contingent convertible bonds, or ‘CoCos’ (also known as AT1) took place at a very attractive price, with a coupon of 5.875%.

BBVA on April 3 announced the successful placement of €1.5 billion five-year preferred senior debt with a floating coupon rate. High demand, about €3.25 billion, allowed the price to be cut to very competitive levels, without an issue premium. The order book closed in just two hours, drawing 260 international investors

Europe has taken a giant leap forward to keep taxpayers from footing bailout bills in the future. Last week, the European Commission unveiled a regulatory package which, among other measures, envisaged the revision of the resolution framework for institutions. The proposal represents a new leap towards the goal of ensuring that banks allocate the right amount of resources to absorb eventual losses, even bail-out themselves, without resorting to public funding. It will also help European banks boost the amount of high-quality capital in their balance sheets.

The contingent convertible capital instruments (CoCos) also known as Additional Tier 1 bonds are  hybrid bonds that combines debt and equity elements. Its defining characteristic is that it may be converted into shares if the CET1 capital ratio drops below a specific level.

BBVA is the early-bird Spanish bank in the debt markets in 2016. Once again, it is the first Spanish bank to make an offering on the market in euros of 1 billion euros in 5-year senior bonds. The issue has been very favorably received. International demand exceeded 2.4 billion euros, which has enabled the bank to offer at more competitive prices than initially forecast.

BBVA has placed on the international capital markets its second issuance of contingent convertible securities into ordinary shares under the new European capital regulations (Basel III CRD-IV). The issuance amounted to 1.5 billion euros with perpetual maturity, with a 7% coupon and cancellation option from year five. BBVA was the first European bank to launch an issuance of this type of instrument in April 2013.