BBVA Mexico Makes History in International Markets: Raises $1 Billion and Becomes the First Bank to Price a New Issue Inside the Sovereign
BBVA Mexico cemented its leadership in international markets yesterday with the successful placement of $1 billion in senior unsecured notes with a five-year maturity and a fixed rate of 5.4%.
The transaction marked an unprecedented achievement. For the first time in recent primary market history, a Mexican bank has priced a new issue inside its sovereign benchmark. This reflects the market’s strong perception of BBVA Mexico’s risk profile and represents an exceptional milestone for a financial issuer in Mexico, Latin America and emerging markets more broadly.
BBVA Mexico’s strong credit profile attracted significant interest from the global financial community, with demand reaching more than $2.9 billion, equivalent to a 2.9x oversubscription. Demand was particularly strong among funds focused on short-duration investment-grade strategies, as well as among global investors with a range of specializations. The final allocation therefore included a diversified base of high-quality institutional investors from the United States, Europe, Latin America and Asia.
The issue was rated investment grade, with a Baa1 rating from Moody’s and BBB+ from Fitch Ratings.
Beatriz Muñoz Villa, Chief Financial Officer of BBVA Mexico, said the placement is a powerful vote of confidence in the Mexican financial system and in the strength and soundness of BBVA Mexico.
“This placement reaffirms the global financial community’s confidence in our institution and secures our long-term funding capacity. This will allow us to continue actively supporting lending and backing the projects of individuals and businesses that drive Mexico’s economic development,” Muñoz said.