Garanti BBVA Strengthens Capital Base with $700 Million Tier 2 Bond Issue Amid Strong Investor Demand

Garanti BBVA Strengthens Capital Base with $700 Million Tier 2 Bond Issue Amid Strong Investor Demand

(IN BRIEF) Garanti BBVA, the Turkish subsidiary of BBVA, has completed a $700 million Basel III-compliant Tier 2 bond issuance, raising its total subordinated bond sales to $2.45 billion in two years—the highest among banks. The latest fixed-rate bond, maturing in April 2036 with a 7.625 percent coupon, drew $1.8 billion in investor demand. CEO Mahmut Akten attributed this success to the bank’s strong capital base and investor confidence in both Türkiye and Garanti BBVA, reaffirming its strategy to support long-term growth through subordinated debt instruments and prudent capital management.

(PRESS RELEASE) ISTANBUL, 16-Oct-2025 — /EuropaWire/ — Garanti BBVA, the Turkish subsidiary of BBVA, has successfully completed a new $700 million Basel III-compliant Tier 2 bond issuance, marking another milestone in its ongoing capital management strategy. This latest issue brings the bank’s total subordinated bond sales to $2.45 billion over the past two years — the highest among its peers — reflecting the institution’s strong financial position and the continued confidence of international investors.

The bank’s four recent transactions include $500 million in February 2024, $750 million in November 2024, $500 million in June 2025, and the latest $700 million issuance in October 2025. The newly issued fixed-rate bond, due on April 15, 2036, has a 10.5-year tenor with a call option available between January 15, 2031, and April 15, 2031. It carries a coupon rate of 7.625 percent and attracted demand of around $1.8 billion, highlighting strong investor appetite for Garanti BBVA’s debt instruments.

Commenting on the issuance, Garanti BBVA CEO Mahmut Akten credited the success to the bank’s solid capital foundation and the sustained trust from global markets in both Türkiye and Garanti BBVA. He emphasized that the series of transactions exemplifies the bank’s disciplined approach to capital management and its long-term growth strategy. Akten also reaffirmed the bank’s focus on leveraging subordinated debt instruments to strengthen its capital base and reinforce its position in international capital markets.

The successful conclusion of this latest bond issue further demonstrates Garanti BBVA’s robust balance sheet, strategic financial planning, and its consistent ability to attract global investors, even in a dynamic market environment.

SOURCE: Banco Bilbao Vizcaya Argentaria, S.A.