Spain's BBVA launches first AT-1 bonds issue since Credit Suisse crisis
MADRID, June 13 (Reuters) - Spain's BBVA 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)
