© Reuters. BBVA returns to the market with its first mortgage bonds since 2016
Updates EC3196 with more emission data
Madrid, Jan 11 (.).- BBVA (BME:) has returned to the market this Wednesday with an issue of 4.5-year mortgage bonds, the first of this type of guaranteed securities that it has carried out since 2016 and the second of debt in general that launches in less than 15 days.
Today’s issue, the amount of which is still unknown, will be in euros and the bonds will be listed in Spain, at a starting price of 30 basis points plus the “mid swap”, which is used as a reference for these issues.
BBVA itself and other entities such as Commerzbank (ETR:), Helaba, HSBC or Natixis (NYSE:) will be in charge of placing these titles in their target market, preferably institutional investors, according to market data collected by EFE.
This issuance is part of the financing plan scheduled for 2023, explains the bank, which adds that the objective is to manage the balance and regulatory liquidity ratios that are required of entities in light of the amortization schedule of the Bank’s TLTRO program European Central.
The entity carried out a total of six debt issues in 2022, one of non-preferred senior securities, worth 1,000 million euros; the next one, of preferred senior debt in two tranches for an amount of 1,750 million; another non-preferred senior debt in dollars; another of preferred senior debt of 1,250 million, and two with a “green” seal, one of 1,250 million and the other of 425 million.
Likewise, today is the second time that BBVA issues debt this year, after the 1,000 million euros in non-preferred senior securities that it put on the market on the 3rd, with an eight-year repayment term and the possibility of Early departure at seven years.
Improving the costs of financial debt is one of the reasons why entities usually make these issues, especially when investors are interested, and on this occasion they also want to take advantage of the opportunity before interest rates rise further and with them, the remuneration that they must pay to the clients.