Press Release

BME admits to trading a contingent convertible bond by BBVA

• For an amount of 1 billion euros

25 September, 2018

BME’s AIAF fixed income market today admitted to trading a new issue of contingent convertible bonds by BBVA, with a value of 1 billion euros.

The issue has a 5.5% annual coupon and the individual value of each bond is 200,000 euros. These assets qualify as perpetual debt over which the issuer reserves a call option in the fifth year. The placement is aimed at institutional investors while retail investors are expressly excluded.

BBVA, BNP Paribas, Barclays, Bank of America Merrill Lynch, Citigroup and Credit Suisse have acted as Joint Bookrunners of the issue, while Bankia and Bankinter have participated as Co-managers. Allen & Overy has acted as legal advisor for the issuer on English and Welsh Law and J&A Garrigues on Spanish law. Linklaters has advised the placement companies on English, Welsh and Spanish legislation.

The securities have been assigned a Ba2credit rating by Moody's and BB by Fitch.

The issue is intended to complement the capital requirements required by the European authorities and follows those launched in AIAF by CaixaBank and Ibercaja Banco in March and April of this year, for 1.25 billion euros and 350 million euros, respectively.

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