BBVA sells $1 billion CoCo bonds in the U.S. with demand exceeding three times the offer
MADRID, Sept 12 (Reuters) - Spain's BBVA sold 1 billion in U.S. dollars in a contingent convertible bond with a 6-year redemption option, in what was the second issuance of an AT-1 bond in 2023, the lender said.
The interest rate was set at 9.375%, below the exit rate of 9.625%. Demand tripled the initial offering, reaching $3.4 billion, BBVA said late on Monday.
The underwriters of the issue were Barclays, BBVA, BofA Securities, HSBC, Morgan Stanley and Societe Generale.
The decision by the Swiss regulator in March to write down $17 billion of Credit Suisse Additional Tier One bonds (AT1s) as part of a forced takeover by UBS roiled the AT1 bond market, raising questions about its future.
In June, the Spanish bank sold 1 billion euros in AT1 bonds following investor demand of 3.1 billion euros, in the first perpetual bond it had issued since July 2020. (Reporting by Jesús Aguado; editing by Inti Landauro and Louise Heavens)
