BBVA launched the first social bond to help mitigate the Covid-19 pandemic

10/06/2020

BBVA launched on May 27th, the first social bond to help mitigate the severe social and economic impacts caused as a result of the Covid-19 pandemic.

The Spanish entity successfully issued a 1bn euro 5-year Senior Preferred bond whose proceeds will be used to finance social projects in different areas like healthcare, education, affordable housing or financing for small and medium enterprises.

This Covid-19 Social bond, the first issued by a private European Financial Institution, shows BBVA’s strong commitment towards the Spanish society. The nature of the issuance drew a lot of interest from the market and the deal was oversubscribed almost five times.

This bond issue is part of BBVA’s Pledge 2025 to mobilize 100bn euro between 2018 and 2025 to fight climate change and promote sustainable development. It also reinforces the bank’s leadership as an issuer of bonds tied to the United Nations’ Sustainable Development Goals (SDGs), a pioneering financial institution for green bonds in Spain, and now for Covid-19 social bonds in Europe.

Societe Generale played an important role as Joint Bookrunner of the deal.

«  Since the outbreak of the pandemic we have been mobilized more than ever to help our clients and the economy. We are proud to support BBVA in this deal with positive social and economic impact  »

Fernando García
Head of DCM for Societe Generale in Spain and Portugal