Spanish financial services group BBVA has issued CHF 390 million (€425 million) in senior preferred green bonds in the Swiss debt market, structured across two distinct tranches maturing in 2030 and 2033.
The first tranche placed CHF 205 million (€223 million) maturing in four years at a spread of 78 basis points over the Swiss Average Rate Overnight (SARON) mid-swap rate, carrying an annual coupon of 1.305 per cent. The second tranche placed CHF 185 million (€202 million) maturing in seven years at SARON mid-swap plus 93 basis points, with a coupon of 1.5375 per cent. Investment banks UBS and Commerzbank acted as joint bookrunners for the transaction.
The issuance forms part of BBVA Group’s 2026 global funding programme and is designed to strengthen its buffer of bail-inable liabilities to comply with the European Union’s Minimum Requirement for Own Funds and Eligible Liabilities (MREL).
Key financial, structural, and capital market details of the issuance include:
- Tranche breakdown: CHF 205 million four-year tranche (2030 maturity) at SARON +78 bps (1.305% coupon) and CHF 185 million seven-year tranche (2033 maturity) at SARON +93 bps (1.5375% coupon).
- Capital purpose: Bolsters loss-absorption capacity under regulatory MREL frameworks while financing eligible green projects.
- Ninth debt issuance of 2026: Follows major capital market placements this year, including a €2,000 million dual-tranche senior non-preferred (SNP) issuance in January, a $2,500 million SNP issuance in February, a $2,250 million SNP and Additional Tier 1 (AT1) dual-tranche deal in April, a €1,250 million senior non-preferred green bond and €2,250 million covered bond placement in June, a $2,300 million three-tranche deal in August, and a combined €1,250 million green bond and £600 million SNP placement in September.
BBVA confirmed that proceeds from the green bond will be allocated to finance or refinance eligible environmental assets within the bank’s sustainable finance framework.
