Spain's BBVA launches first AT-1 bonds issue since Credit Suisse crisis

Credit Suisse AG

13/06/2023 10:01

MADRID, June 13 (Reuters) - Spain's BBVA  BBVA.MC  said
on Tuesday it reopened the market with the issuance of the first
contingent convertible bond (Coco) since the rescue of Credit
Suisse in March 2023.
    The bank said it aimed to raise between 750 million euros
($810.08 million) and 1 billion euros with this issuance.
    According to Refinitiv capital markets news service IFR, the
issuance had already received orders worth 2 billion euros.
    The market for Additional Tier 1 (AT1) bonds which lenders
can use to beef up Tier 1 capital reserves has frozen following
U.S. banking failures and the crisis of Credit Suisse, which
wiped out holders of the bank's AT1 debt.
    The Spanish lender said on Tuesday its AT1 bond had a
redemption window of 21 December 2028 and an initial interest
rate of 8.75%. 
    The underwriters are Barclays, BBVA, Bank of America, Citi,
Goldman Sachs and Natixis, BBVA said. 
    It is the first CoCo issued by BBVA since July 2020
($1 = 0.9258 euros)

 (Reporting by Jesús Aguado; Chiara Elisei; Editing by Louise
Heavens)
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