BBVA Issues €1 Bn in Covered Bonds

5/06/2014 – Cinco Dias

Spanish banks keep seeking ways of catching attention of the international investors willing to invest in Spain. This time BBVA issued covered bonds for 10 years redemption term at a 2.25% interest rate. The crushing demand allowed the Spanish entity cut in the rate significantly.

Last year in January, BBVA issued another serie of bonds at 3.875% rate.

Around 85% of this year´s issue has been purchased by international investors: those originating from Germany and Austria snapped 28%, while the French subscribed for another 20%. Investment funds applied for 42% of all bonds, but also pension funds (25%), banks (24%) and even central banks (9%).

A day earlier Santander Totta issued €750 million in covered bonds for 5 years.

 

Original article: Cinco Días (by Miguel Moreno Mendieta)

Translation: AURA REE

47