BBVA Mexico’s Bond Issuance Details and Impact
BBVA Mexico announced on Thursday that it successfully issued bonds worth 17,354 million pesos in three tranches, including one denominated in US dollars. This move marks the bank’s return to this local format since 2024.
Bond Issuance Breakdown
- First tranche: 9,711 million pesos at a variable rate of TIIE funding rate for one day plus 32 basis points, with a term of 3.5 years.
- Second tranche: 4,723 million pesos at a fixed rate of 8.72% for seven years.
- Third tranche: 158 million US dollars at a fixed rate of 4.35% for three years.
The operation received the highest credit rating from the market: AAA(mex) by Fitch Ratings and mxAAA by Standard & Poor’s.
Impact and Future Plans
Beatriz Muñoz Villa, Chief Financial Officer of BBVA Mexico, stated that the funds will enable the bank to strengthen its strategies for supporting individuals, SMEs, companies, corporations, and institutions to foster their development, new investments, increased financial inclusion, job creation, and efficiency in digitalizing operations.
Key Questions and Answers
- What is the total amount of bonds issued by BBVA Mexico? BBVA Mexico issued bonds worth 17,354 million pesos.
- In how many tranches were the bonds issued? The bonds were issued in three tranches.
- What are the details of each tranche?
- First tranche: 9,711 million pesos at a variable rate of TIIE funding rate for one day plus 32 basis points, with a term of 3.5 years.
- Second tranche: 4,723 million pesos at a fixed rate of 8.72% for seven years.
- Third tranche: 158 million US dollars at a fixed rate of 4.35% for three years.
- What credit ratings did the bond issuance receive? The operation received the highest credit ratings from both Fitch Ratings (AAA(mex)) and Standard & Poor’s (mxAAA).
- How will BBVA Mexico utilize the funds from this issuance? The funds will be used to support various sectors, including individuals, SMEs, companies, corporations, and institutions, fostering development, new investments, financial inclusion, job creation, and digitalization of operations.
