BBVA Issues €1 Billion Green Bond At Record Low Spread

BBVA has successfully sold a €1 billion bond that ranks above other bonds but below regular ones; this "green bond" has a 2035 due date, showing investors really want sustainable financial options. Orders for the deal reached €2.9 billion, about three times more than what was available, so the bank could improve its price estimates from 1.35% above a benchmark to a final rate of 1.08%. This accomplishment is the smallest difference ever seen on a 10-year, higher-level bond of this type from a Southern European bank since 2021, setting a new high standard for the region’s debt markets.

The green bond sale is part of BBVA’s larger funding plan for 2025, which looks to boost its minimum level of funds and debts that can absorb losses. Making the bank’s eligible debts stronger is a key part of how it manages its money, helping it meet legal requirements while backing sustainable growth plans. The bond’s success shows BBVA’s skill in getting lots of investor interest, especially for options that focus on environmental, social, and governance (ESG) goals.

The deal was handled by BBVA as the main manager and seller, with BNP Paribas, IMI – Intesa Sanpaolo, Natixis, and Nomura working as co-managers. The participation of many global banks highlights how well the sale attracted different types of investors, including big clients wanting to invest in sustainable finance options. Experts say that the large number of subscriptions proves investors still want green bonds from well-known financial companies, even with unstable global markets and increasing interest rates.

The 2035 green bond is set up to give investors exposure to BBVA’s dedication to sustainability while keeping a good balance of risk and reward. These bonds are higher than some but lower than others, giving a return that takes risk into account and appeals to investors who plan to hold them for a long time. By getting a rate of 1.08% above a benchmark, BBVA got good funding terms, reflecting investor trust in the bank’s financial health and the appeal of its ESG efforts.

This sale is BBVA’s fourth time raising money on the capital markets in 2025, showing the bank is actively managing its funding and debts. Earlier in the year, BBVA obtained $1 billion through special bonds that convert to equity in January, followed by a €1 billion sale of lower-level debt in February, and another €1 billion higher-level debt deal in July. Overall, these deals show the bank’s continuous effort to keep a diverse funding mix, improve its capital levels as required by regulations, and support its key growth plans.

The green bond also fits with BBVA’s wider focus on sustainability. In recent years, the bank has been increasingly funding projects that support clean technology, renewable energy, and other projects that match ESG goals. This focus is also strengthened through alliances, like the one with BloombergNEF to improve BBVA’s knowledge of clean technology funding. Through these actions, BBVA aims to include environmental factors in its main business activities while giving investors chances to invest sustainably.

People who watch the market have said that how well BBVA's green bond did shows that funding for environmentally friendly projects is becoming more important in Europe and around the world. More and more, investors want to find ways to invest money that not only make them money but also have a clear positive effect on the environment, and banks such as BBVA are in a good spot to provide these opportunities. The fact that people wanted to buy almost three times as many bonds as were available shows that there is still a big interest in green bonds, and the way prices are trending says that investors still appreciate reliable companies that are open about what they do and have real plans to help the environment.

By selling a type of green bond that is considered less risky, BBVA not only makes its financial situation stronger but also shows that it is serious about making environmentally friendly practices a key part of its financial and overall plans. The mix of good prices, lots of interest from investors, and a clear connection to rules and environmental goals proves that BBVA knows how to use the financial markets well. As the bank keeps moving forward with its funding plans in 2025, this bond sale proves that it can meet its financial requirements while also helping the change to a financial system that is better for the environment.

To sum up, BBVA selling €1 billion worth of SNP green bonds is a big achievement in its funding plans for 2025. The strong interest from investors, the good prices, and how well it fits with environmental goals show that the bank is in a strong position in the market and can react to what investors want. This deal not only helps BBVA meet the financial rules it needs to but also shows how important environmentally friendly ways of funding projects are becoming in Europe's debt markets, giving an example for other groups that want to balance making money with being responsible to the environment and society.