BBVA launches its first issue of 2022: a senior non-preferred bond

On January 5, BBVA launched a euro-denominated senior non-preferred bond issue on the wholesale markets. The initial price is mid-swap plus 105 basis points and the term is 7 years, with a redemption option in the sixth year.

By doing so, the bank debuts with an instrument included in its funding plan, already familiar to the market. This plan foresees that the bank will issue between 2 and 3 billion euros per year in senior issues -both preferred and non-preferred- to meet the MREL requirement. With new issues such as this one, the bank is diversifying debt maturities and preparing to replace the instruments issued that mature this year.

The banks spearheading the operation are BBVA itself, together with IMI-Intesa Sanpaolo, Natixis, NatWest Markets, Nomura and Société Générale.