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BBVA in 2bn bond issue to bolster its capital base

SPANISH bank BBVA said yesterday it had raised &euro;2bn (&pound;1.8bn) in a sale of convertible bonds, outstripping the &euro;1bn it had initially intended to issue.<br /><br />&ldquo;BBVA&rsquo;s clients have expressed a very favourable opinion of the transparency of the issue and of its attractive return, with a fixed 5 per cent coupon for five years,&rdquo; a spokesman said.<br /><br />News of the bond issue came just two days after the bank, Spain&rsquo;s second largest, announced that it had sold a property portfolio to a consortium headed by Deutsche Bank.<br /><br />Spanish banks have fared better than European counterparts amid the banking crisis, but many analysts believe that they are yet to be hit by a slew of bad property loans, as the country&rsquo;s housing market continues to suffer.<br /><br />The bond issue is aimed at strengthening the bank&rsquo;s capital base to offset potential damage from its loan books.