BBVA - Press Room

• Thanks to strong demand the issue has been fully subscribed in just five days, meaning that the final size has been increased to €2,000Mn.
• The issue, aimed at retail clients, has been well taken up due to its attractive returns, the guranteed nature of the investment, and the product’s transparency

BBVA today announced that it had successfully concluded the placement of its convertible bond issue.  Thanks to strong demand, which has meant pro rata allocations in several tranches, the Bank has been able to increase the size of the issue from the initial €1,000Mn to a final figure of €2,000Mn.  BBVA’s clients reacted very positively to the issue’s transparency, as well as its attractive returns: a fixed coupon of 5% over 5 years with the investment guaranteed.  The deal forms part of the Bank’s annual issue plan.

The full take-up of the deal was achieved in a record time of just five days, thanks to the product’s warm reception among the Bank’s clients.   Clients were particularly attracted to the product’s transparency and its guarantees (zero market risk, zero investment risk, and no premium).  

The issue forms part of the BBVA strategy to provide its retail client base with the right product solutions for a low-interest rate environment.  With this product, the Bank’s clients will enjoy an attractive return in the form of a fixed coupon of 5% over the entire life of the product.  

The Bank, meanwhile, has access to €2,000Mn of capital at any moment after the first year (during the following four).  

The warm reception given to the deal has been due to the quality of the product's design: simplicity, transparency, and attractive financial conditions.  Thanks to this design, BBVA has been able to place this convertible bond issue in record time, increasing the size of the deal to the maximum amount originally announced of €2,000Mn.  Client demand actually exceeded this figure by far, and there were pro rata allocations in several tranches.