BBVA, together with Bank of America Merrill Lynch and MISU, has managed a new euro-denominated fixed rate transaction for RCI Banque.

The issue had a strong market acceptance. Order books almost 3x oversubscribed (2.8), and price decreased from 190-195bps over midswap rate to 178bps. The total amount issued was €750m, which has been allocated among a significant variety of investors (mainly French but also with a remarkably presence of German and British investors).

Improved market conditions in Europe during last weeks made an opportunistic returno for RCI Banque to the Eurobond market for what should be their last benchmark of the year. However, given slightly tense market background coupled with recent negative headlines on the Auto Sector, the transaction has been closed with a short dated maturity, two years, thus ensuring a practically "risk free" execution.

RCI Banque is the Sales Financing unit at Renault group. It has 75 years experience, 35 in Spain, and it is the second largest financial entity owned by an Auto company in Europe. RCI contributed €522 Mn to Group revenues, up 12% on the first quarter 2011.

This transaction reinforces BBVA's Equity Capital Markets activity. BBVA has played an important role in the following equity transactions this year: Telefónica Deutschland and Grupo Financiero Santander México IPO; Rights Issues of UniCredit, Banco Sabadell, BES or Peugeot; Repsol ABB; or capital increases of Cencosud, Fibra Uno and Mexichem.