Garanti BBVA Successfully Completes USD 500 Million Tier 2 Bond Issuance
Garanti BBVA Successfully Completes USD 500 Million Tier 2 Bond Issuance
Another Significant Capital Move from Garanti BBVA
Garanti BBVA Successfully Completes USD 500 Million Tier 2 Bond Issuance
Garanti BBVA has successfully completed the issuance of a USD 500 million Tier 2 subordinated bond with a maturity of 10.5 years and a call option after the 5th year. The transaction attracted demand exceeding USD 2 billion.
Garanti BBVA has launched another Tier 2 issuance in international markets. The bank successfully issued a USD 500 million subordinated bond with a maturity of 10.5 years and a call option exercisable after 5 years. Structured in compliance with Basel III standards, the issuance was offered to offshore institutional investors.
Despite volatile geopolitical and economic conditions, the transaction attracted demand of over USD 2 billion—considered a strong indication of investor confidence in both Turkiye and Garanti BBVA’s solid financial standing. The transaction outperformed expectations, even amid timing overlaps with the Treasury’s sukuk issuance and rising pricing pressures.
Commenting on the issuance, Garanti BBVA CEO Mahmut Akten said, “This issuance reflects both the confidence investors place in our bank and our strong position in international markets. The robust demand despite challenging market conditions underscores Garanti BBVA’s financial strength and reputation. We will continue contributing to the Turkish economy in a manner worthy of this trust.”
International financial institutions acting as joint bookrunners for the transaction included Banco Bilbao Vizcaya Argentaria, BofA Securities, J.P. Morgan Securities, BNP Paribas, Emirates NBD, First Abu Dhabi Bank, MUFG Securities, and Standard Chartered Bank.