BBVA has been the first to tap international debt markets in 2013. An excellent response from investors drove prices down and the bank placed ¤1.5 billion in senior debt. Furthermore the five-year term confirms the market's confidence in BBVA.
BBVA, along with Commerzbank, Goldman Sachs, HSBC and Société Générale, managed the operation. The closing price was 295 basis points over mid-swap with a 3.75% coupon. Surplus demand allowed BBVA to reduce the initial price of 310 basis points above mid-swap. Within two hours of opening the order book demand exceeded ¤5 billion, more than triple the ¤1.5 billion on offer, with offers coming from over 400 investors.
This was BBVA's first five-year senior debt issue since April 2011 when it placed ¤500 million. Today's operation is evidence of improved investor confidence and interest in the debt of international companies such as BBVA. Some 90 per cent of participating investors were non-Spanish.
The issue carries a longer term and a lower cost than two senior debt issues placed In September last year for a total of ¤2.5 billion. Also, in October 2012, BBVA successfully placed a $2 billion three-year senior debt issue in the U.S.
Debt issues in wholesale markets are common practice among major multinationals such as BBVA to finance their activities and growth.