Garanti BBVA Issues USD 2.45 Billion in Subordinated Bonds in Two Years
Garanti BBVA Issues USD 2.45 Billion in Subordinated Bonds in Two Years
Garanti BBVA has successfully completed a new USD 700 million transaction, bringing its total subordinated bond issuances over the past two years to USD 2.45 billion, making it the bank with the largest Tier 2 issuance in recent years. Strong demand and competitive pricing reaffirmed international investor confidence, sending a powerful message to the capital markets.
Garanti BBVA continued its successful performance in international capital markets with a new USD 700 million subordinated (Basel III-compliant) Tier 2 bond issuance. With four transactions completed over the past two years—USD 500 million in February 2024, USD 750 million in November 2024, USD 500 million in June 2025, and USD 700 million in October 2025—the bank reached a total Tier 2 issuance volume of USD 2.45 billion. With this strong performance, Garanti BBVA became the bank with the highest total amount of Tier 2 capital issuances in recent years.
Garanti BBVA CEO Mahmut Akten said:
“Successfully completing four consecutive Tier 2 issuances over the past two years is not only a testament to our solid capital structure but also a clear indicator of the confidence international markets have in both Turkey and Garanti BBVA. These transactions, completed with strong investor demand, are a tangible result of our effective capital management and long-term growth strategy. We will continue to strategically utilize subordinated debt instruments in line with our principle of building long-term and transparent relationships with investors, thereby supporting our sustainable growth while enhancing our presence in capital markets.”
Strong Balance Sheet and Sustained Investor Confidence
Following three successful Tier 2 transactions over the past two years, Garanti BBVA once again demonstrated its strong balance sheet, effective capital planning, and long-term success in investor relations with robust demand of around USD 1.8 billion for its USD 700 million issuance concluded on October 15.
The fixed-rate bond, with a maturity date of April 15, 2036, and a 10.5-year tenor, includes a call option exercisable between January 15, 2031 and April 15, 2031, and carries a coupon rate of 7.625%