BBVA - Press Room

• The acceptance rate for the exchange was the highest registered in Europe for this type of issue aimed at institutional investors
• The bank obtained a gross capital gain of €225 mn in this operation that it will use to build up additional provisions
• The success of the exchange is yet another demonstration of investor and the market confidence in the Group

BBVA successfully concluded today an exchange offer which commenced last October 5 in relation to three issues placed on the institutional market. The transaction was received very positively by investors, as evidenced by the fact that 81% of the weighted average volume of the securities previously sold was exchanged for the new preferred securities. This acceptance rate sets a new record for this type of operation in the European institutional market, and shows the appeal of the bank's offer to investors. The capital gains arising from this transaction will be over €225 mn, that will be used to build up additional provisions.

On October 5, BBVA commenced an offer in relation to 3 issues of preferred securities sold to institutional investors for a nominal amount of approximately €1,500 mn, in which said securities would be exchanged for new preferred securities. Two of these issues, for €550 mn and €500 mn, were euro-denominated and another, for (400 mn) was issued in sterling.

The Bank successfully completed the transaction, which enjoyed an excellent reception from investors, with investors exchanging 81% of the average weighted volume of the previously issued securities for the new preferred issue. This acceptance rate sets a new record for this type of transaction in the institutional market.

According to the definitive data on the transaction, which was executed by BBVA and Morgan Stanley, the acceptance rate for the transaction was 84.4% and 67.1%, respectively, in the two preferred issues denominated in euros, and 92.2% for the issue denominated in sterling. These percentages give an average weighted acceptance rate of 81% for the three issues.  

The high acceptance rate reflects the strong appeal of the Bank’s offer to investors. This positive reception was due both to the terms of the offer and to the current market situation. In addition, it demonstrates once again, that BBVA inspires a high degree of confidence in investors, which was also evidenced in recent weeks by the placement of a €2 bn convertible bond issue on the retail bond market, and the placement of mortgage backed loans (cédulas) amounting to €1 bn at a very competitive spread with respect to the market.

The capital gains arising from this transaction will be over €225 mn, that will be used to build up additional provisions.