LONDON, Feb 11 (IFR) - Spain’s second largest bank BBVA is testing European investor demand for a new Additional Tier 1 euro bond at low to mid 7%, according to a lead manager involved in the deal.
The perpetual non-call five-year issue is expected to be rated BB- by Fitch and will be BBVA’s second Additional Tier 1 transaction in less than a year.
Barclays, BBVA, Citi and Morgan Stanley are joint bookrunners for the transaction, which will convert to equity if the bank breaches a 5.125% (bank and group) Common Equity Tier 1 trigger. Pricing is expected later today. (Reporting by Aimee Donnellan, Editing by Helene Durand, Julian Baker)