BBVA chosen by CITIC of China for new hybrid bond issueNovember 8, 2013
Second Basel III-compliant issue in Asia
BBVA has acted as bookrunner and global coordinator for the $300Mn hybrid bond issue launched by China CITIC Bank. This is Asia's second Basel III-compliant hybrid issue.
With a BBB- rating from Fitch, the 10.5Y bonds bear a 6% interest rate and are callable after just five and a half years if the issuer so decides.
The issue generated much interest in the market with orders totaling $2.8bn from 170 accounts and the order book was nine times oversubscribed.
Some 43% of the bonds were acquired by investment and pension funds, 30% were bought by insurance companies, private banks acquired 17%; and companies and banks obtained 5% and 3%, respectively.
Even though 77% of the issue was snapped up by Asian buyers, it also generated great interest among European investors who purchased the remainder.
Other bookrunners in addition to BBVA include Citic Securities International, Goldman Sachs, HSBC and RBS. HSBC and RBS also acted as global coordinators alongside BBVA for this issue.