Basel III compliant Tier-2 issuance of US$500mn
Basel III compliant Tier-2 issuance of US$500mn
On February 21, 2024 Garanti BBVA has successfully issued a $500 million 10NC5 Basel III compliant Tier-2 with a coupon rate of 8.375%. After returning back to the market for the first time since 2017, the transaction received more than 8 times demand from 283 unique investors in total. This deal became the most cost-effective “sub-debt issuance” made by a bank in recent years with its pricing corresponding to “US Treasury + 409 bps”, “Turkish eurobond + 110 bps” or “Turkish eurobond x 1.15 multiplier”.
Commenting on the subject, Recep Baştuğ stated that: “Garanti BBVA continues its ambition of being the first bank that international banks and investors want to partner with in Türkiye. The Basel III compliant subordinated bond issuance underlines our Bank's expertise in financial investments and its strength in international banking relations. We are happy to have successfully completed the issuance of $500 million subordinated bonds and received outstanding interest from international investors. The high demand for the transaction is an important indicator of the trust in Türkiye and Garanti BBVA. We believe that with this transaction, we have paved the way for other institutions and organizations in our country to borrow with better conditions. The transaction also contributes to the development and deepening of capital markets. We will continue to support our country via external funding opportunities with our reputation in international markets and strong financial structure.”