BBVA leads €1bn Telefónica's debt allocationMarch 15, 2013
Telefónica has taken advantage of the decline of the risk premium and the lowest interest rates of the Spanish sovereign 10-year bond since 2010 to launch a new debt issue of €1bn. BBVA has acted as Joint Bookrunner, together with other five entities. The bonds have attracted a wide range of foreign investors.
BBVA Corporate & Investment Banking has led the allocation of this Telefónica's 8-year bond issue. The transaction is linked to a previous liability management tender offer.
The issue had an initial price of approximately 260 basic points over the midswap. At the end of the offering, the strength of the book, with a demand near €3bn, allowed Telefónica to tighten the price to 250bp. The coupon will be 3.961%.
The transaction was thoroughly allocated among more than 375 investors from 31 different nationalities. Accounts from UK and Ireland acquired the biggest proportion of the issue (22%), followed by Iberia (17%), France (12%), Germany and Austria (11%).
Apart from the geographical diversification, the quality of the order book also reflects in the high participation of Fund Managers and Banks, which represented 63% and 13%, respectively.