Garanti BBVA Successfully Completes Basel 3 Compliant Capital-Like Bond Issuance

Foreks - Garanti BBVA (BME:BBVA) has once again demonstrated its strong position in international markets by successfully completing a Basel 3 compliant capital-like bond issuance. The bank executed a second capital-like issuance of the year with a five-year call option, maturing in ten years, amounting to $750 million. According to a statement from Garanti Bank, BBVA also offered to repurchase bonds with a nominal value of $750 million maturing in 2027, issued in 2017, which are classified as additional Tier 1 capital.

This issuance features a yield of 8.125%, which marks it as the lowest cost capital-like bond from a Turkish bank recently and has the lowest spread compared to U.S. bonds. Additionally, this issuance possesses the distinction of being the highest value capital-like bond transaction raised by a Turkish bank from abroad recently. The transaction also stands out as Garanti BBVA's second successful issuance in the international capital markets this year.

Garanti BBVA's General Manager, Mahmut Akten, stated regarding the matter, "This issuance underscores our strength in establishing long-term relationships in global capital markets, the confidence investors have in our strong financial performance, and the positive investment perception towards Turkey. We will continue to create value for our country with our robust financial performance and the credibility we have built in international capital markets.”