BBVA issued €1.5 billion of covered bonds with a maturity of 4.5 years. The initial interest rate (‘mid swap’ plus 32 basis points) was reduced to ‘mid swap’ plus 27 basis points thanks to demand for €3,000 million. The issue will be listed in Madrid and under Spanish regulations. This is the bank’s first issue of this type of debt since November 2016.
This issue is part of the funding plan foreseen for 2023. The rationale for issuing covered bonds is to manage the balance sheet and regulatory liquidity ratios in view of the European Central Bank’s TLTRO repayment schedule. The underwriters are BBVA, Commerzbank, Helaba, HSBC and Natixis.
This is BBVA’s second issue in 2023. On 3 January, it placed a EUR 1,000 million issue of senior non-preferred debt with a term of eight years.
The ICM team involved in the transaction included partner Salvador Ruiz Bachs, senior associate Cristina Pablo-Romero Rein, and associates Lázaro García Domínguez and Alberto Vega Muñoz
