BBVA plans EUR 1 billion unregistered convertible preferred share issue
BBVA•BBVA plans to issue EUR 1 billion in contingent convertible preference shares, which may convert into newly issued ordinary shares and will not be offered to retail investors. The securities are expected to qualify as Additional Tier 1 capital and carry a discretionary 6.5% annual payment through May 17, 2034, before resetting to 333.4 basis points above the five-year mid-swap rate.
1. Issue terms
BBVA plans to issue EUR 1 billion of contingent convertible preference shares without shareholders’ preemptive subscription rights. The securities may convert into newly issued ordinary shares and are not being offered to retail investors. They are expected to qualify as Additional Tier 1 capital.
2. Payment and closing
The securities will carry a discretionary annual payment of 6.5% from Nov. 18, 2026, through May 17, 2034. From May 18, 2034, the rate will reset at 333.4 basis points above the five-year mid-swap rate. Closing is scheduled for Nov. 18, 2026.
