BBVA placed CHF 425 million of a senior preferred bond issue today. The labeled green bond is divided into two tranches with maturities of three and six years. The first tranche, maturing in 2025 and comprising CHF 215 million, bears interest at SARON mid-swap plus 108 basis points, while the second tranche, maturing in 2028 and comprising CHF 210 million, bears interest at SARON mid-swap plus 123 basis points.
The proceeds of the senior preferred bond, which is green-labeled, will be used to finance projects and activities that qualify as green under the eligibility criteria of the BBVA sustainable emissions framework.
The rationale for this transaction is to grasp the opportunity offered by improved market conditions and thus advance some funding for next year, while still complying with MREL requirements.
In 2022 so far, BBVA has completed another five public issues of debt securities: 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, for an amount of $1.75 billion; a senior preferred debt issue for €1.25 billion; and a senior preferred green bond issue for a further €1.25 billion. The bank also conducted several private placements of senior preferred debt, for a total amount of €1.07 billion.
Since 2018, BBVA has issued three other green bonds, for a volume of €1 billion each: two senior non-preferred bonds in 2018 and 2019, respectively, and a contingent convertible or ‘CoCo’ in 2020. The bank has also issued two senior preferred social bonds for a volume of €1 billion each: the first in 2020 to mitigate the impact of COVID-19, and the second in 2021.