BBVA, jointly with BNP Paribas, Deutsche Bank and Societe Generale, has successfully led the new long seven-year bond issue launched by the Italian energy company A2A.

The 500 million Euro bond issue was very well received by the market even though it was in competition with several transactions announced on the same morning by other European companies. Investor demand exceeded 2,500 million Euros. The high level of oversubscription allowed the A2A to reduce the spread offered to investors from an initial guidance of 290 – 300 bps over mid swaps to the final 283 bps.

The bonds, targeted to institutional investors, were particularly in demand with fund managers and insurance companies, which accounted for 78% of the total allocations.  The transaction achieved also good geographical diversification led by Italy with 33%, followed by France with 18% and Germany and United Kingdom and Ireland, with 16%.

In line with the Group's financial strategy of extending the average maturity of its debt stock and optimizing the maturity schedule, A2A has also launched a Tender Offer aimed to partially buy back its bonds maturing in 2014 and 2016.

With this new issue, where the credit and coverage teams in Italy and London collaborated, BBVA Corporate & Investment Banking shows once again its support for its customers all over the world and its outstanding execution capabilities in the capital markets.