Banking institution BBVA raises one billion euros in a green bond, fueled by robust investor interest in sustainable finance.
BBVA, the Spanish banking giant, has raised €1 billion through a senior non-preferred green bond maturing in 2035. This marks the bank's fourth debt deal in 2025 and a significant benchmark in the bond market.
The issued bond attracted orders worth €2.9 billion, demonstrating strong investor appetite for sustainable instruments. The final pricing for the bond was set at mid-swap +108 bps, a notable improvement from the originally announced mid-swap plus 135 basis points.
The deal for BBVA's green bond was led by BBVA (as bookrunner and dealer), alongside BNP Paribas, IMI - Intesa Sanpaolo, Natixis, and Nomura. This issuance strengthens BBVA's Minimum Requirement for Own Funds and Eligible Liabilities (MREL) position.
In February, BBVA raised €1 billion in Tier 2 subordinated debt, also with a final pricing of mid-swap +108 bps. The tightened guidance for both bonds was originally mid-swap plus 135 basis points.
Interestingly, another €1 billion in SNP debt was raised by BBVA in July, but the search results do not provide information about which banks were involved in the issuance of this bond.
The strong investor appetite for BBVA's green bond underscores the appeal of sustainable instruments, as previously stated. This issuance is part of BBVA's broader wholesale funding strategy for 2025, which aims to bolster the bank's eligible liabilities to meet MREL.
In January, BBVA raised $1 billion in Additional Tier 1 contingent convertible bonds, marking another capital markets transaction in 2025. However, no prior context was provided for this transaction.
Overall, BBVA's latest green bond issuance is a testament to the bank's success in the bond market and its commitment to sustainable financing. This is the lowest spread achieved on a 10-year SNP by a Southern European financial institution since 2021, further highlighting BBVA's strong position in the market.
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