BBVA in 2bn bond issue to bolster its capital base
SPANISH bank BBVA said yesterday it had raised €2bn (£1.8bn) in a sale of convertible bonds, outstripping the €1bn it had initially intended to issue.
“BBVA’s clients have expressed a very favourable opinion of the transparency of the issue and of its attractive return, with a fixed 5 per cent coupon for five years,” a spokesman said.
News of the bond issue came just two days after the bank, Spain’s second largest, announced that it had sold a property portfolio to a consortium headed by Deutsche Bank.
Spanish banks have fared better than European counterparts amid the banking crisis, but many analysts believe that they are yet to be hit by a slew of bad property loans, as the country’s housing market continues to suffer.
The bond issue is aimed at strengthening the bank’s capital base to offset potential damage from its loan books.