BBVA Perú sold $300 million worth of 10-year notes on Monday in its first bond issue in the international market in almost a decade.
The bank placed non-call five Tier 2 bonds on Monday in a deal that was 5.3 times oversubscribed, a source familiar with the deal told LatinFinance.
The lender priced the new 2034 notes at par to yield 6.2%, after opening the deal earlier in the day at around 6.625%, the source told LatinFinance. Investors placed more than $1.6 billion in orders, the source added.
The proceeds will fund a tender offer BBVA Perú announced on Friday. It is offering to repurchase any or all $300 million outstanding on its 5.25% 2029 Tier 2 bonds, putting up an even exchange for every $1,000 in principal to investors that turn in their notes by March 8.
BBVA — the lender’s Spanish parent — Bank of America and Goldman Sachs were joint bookrunners on the bond sale and are dealer managers on the buyback offer, the filing said.
BBVA Perú began calling investors last week to pitch the Tier 2 notes and added that it plans to use the proceeds for the tender offer.
S&P Global and Moody’s rate the notes BBB- and Baa3, respectively.
The bank last issued bonds in the cross-border market in September 2014 when it printed the 2029 notes, according to information on the bank’s website.