BBVA to Early Redeem EUR 750M Subordinated Notes on Feb 22

TL;DR

**BBVA is paying off EUR 750M in debt early, signaling financial strength.**

AI Summary

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) announced its decision to early redeem EUR 750 million in Subordinated Notes (ISIN XS1954087695) on February 22, 2024, which were previously qualified as Tier 2 capital. Noteholders will receive EUR 100,000 per note plus EUR 2,575 in accrued interest. This matters to investors because early redemption of debt can signal a strong financial position and potentially reduce future interest expenses, but it also means these specific notes will no longer generate interest income for their holders.

Why It Matters

This move suggests BBVA has sufficient liquidity and may be optimizing its capital structure, which could be a positive sign for the bank's financial health and profitability.

Risk Assessment

Risk Level: low — The early redemption of debt generally indicates a healthy financial position for the issuer, reducing future interest obligations.

Analyst Insight

Investors should view this as a positive indicator of BBVA's financial health and liquidity, potentially leading to reduced interest expenses and improved profitability. Existing noteholders should be aware their investment will be returned with interest on February 22, 2024.

Key Numbers

• EUR 750 million — Total Subordinated Notes (The principal amount of debt being redeemed early by BBVA.)
• EUR 100,000 — Redemption Amount per Note (The principal amount paid back to holders for each Subordinated Note.)
• EUR 2,575 — Accrued Interest per Note (The additional interest paid to holders for each Subordinated Note until the redemption date.)
• February 22, 2024 — Redemption Date (The date when the Subordinated Notes will be officially redeemed.)

Key Players & Entities

• BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (company) — the registrant and issuer of the notes
• BBVA (company) — short name for the registrant
• European Central Bank (company) — provided prior consent for the redemption
• EUR 750 million (dollar_amount) — total amount of Subordinated Notes being redeemed
• EUR 100,000 (dollar_amount) — Optional Redemption Amount per Subordinated Note
• EUR 2,575 (dollar_amount) — accrued and unpaid interests per Subordinated Note
• February 22, 2024 (date) — Optional Redemption Date for the Subordinated Notes
• January 17, 2024 (date) — date of the filing and announcement

Forward-Looking Statements

• BBVA's interest expenses will decrease in the next fiscal year due to this redemption. (BBVA) — high confidence, target: December 31, 2024
• BBVA's Tier 2 capital ratio will be impacted by the removal of these notes. (BBVA) — medium confidence, target: February 22, 2024

FAQ

Filing Documents

• d696798d6k.htm (6-K) — 12KB
• g696798g01n30.jpg (GRAPHIC) — 11KB
• 0001193125-24-009120.txt ( ) — 29KB

From the Filing

6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2024 Commission file number: 1-10110 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (Exact name of Registrant as specified in its charter) BANK BILBAO VIZCAYA ARGENTARIA, S.A. (Translation of Registrants name into English) Calle Azul 4, 28050 Madrid Spain (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F X Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes No X Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes No X Banco Bilbao Vizcaya Argentaria, S.A. ( BBVA or the Bank ), in compliance with the Securities Market legislation, hereby proceeds to notify the following: OTHER RELEVANT INFORMATION BBVA hereby announces its irrevocable decision to early redeem its Subordinated Notes issuance, carried out for a total amount of EUR 750 million and with ISIN code XS1954087695 (the Issuance ), that was qualified as Tier 2 capital of the Bank and the Group, next 22 February 2024 (coinciding with the Optional Redemption Date) and once the prior consent from the European Central Bank has been obtained. The Optional Redemption Amount per Subordinated Note shall be EUR 100,000 plus any accrued and unpaid interests until (but excluding) 22 February 2024, which amounts EUR 2,575 per Subordinated Note, and shall be paid to Holders in accordance with the terms and conditions of the Issuance. Madrid, 17 January, 2024 This English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish original will prevail. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Bilbao Vizcaya Argentaria, S.A. Date: January 17, 2024 By: /s/ Jose Maria Caballero Cobacho Name: Jose Maria Caballero Cobacho Title: Assets and Liabilities Management Director

View Full Filing

View this 6-K filing on SEC EDGAR