BBVA places €1.25bn five-year green bond
What's the deal? BBVADealroom has a profile for this one. Try Dealroom → has placed a five-year senior non-preferred green bond worth €1.25 billion, the Spanish bank said in a statement.
The issue drew €3.2 billion in demand — more than double the amount on offer.
That oversubscription let BBVA tighten pricing to a spread of 70 basis points over mid-swap, well below the initial 95 to 100 basis points range.
BBVA acted as global coordinator and bookrunner alongside Crédit AgricoleDealroom has a profile for this one. Try Dealroom →, Deutsche BankDealroom has a profile for this one. Try Dealroom →, HSBCDealroom has a profile for this one. Try Dealroom →, and LloydsDealroom has a profile for this one. Try Dealroom →.
Why now? The bank says it is returning to capital markets to channel financing aligned with its sustainable finance framework.
Proceeds will be allocated according to the criteria set out in that framework.
The signal: BBVA assembled a syndicate of corporate banking heavyweights — Crédit Agricole, Deutsche Bank, HSBC, and Lloyds — to place the bond, a lineup that reflects the cross-border investor base now backing European green debt. The more than twofold oversubscription, which let the bank shave roughly 25 to 30 basis points off its initial spread guidance, points to sustained demand that continues to lower borrowing costs for issuers funding sustainable projects.
Read more: Forbes España
Image credit: Alvy
