The Spanish economy has resisted rising interest rates and low growth in the European Union. Growth has so far exceeded expectations and international firms are raising their forecasts. The European Commission upgraded its rating on Monday. However, Spain’s political situation, with a government in office and a prolonged disinvestment process, will make it difficult to extend budgets and approve economic policy measures. In this case, BBVA has issued a warning In a prospectus for an issue in the United States Political fragmentation will slow the Spanish economy.
“Political uncertainty in Spain, where recent general elections revealed a fragmented political landscape, could have a potential impact on the Spanish economy,” the bank warns. A document filed with the United States Securities and Exchange Commission (SEC). In its annual report filed with the U.S. watchdog a few months ago, it generally warned that worsening political, economic and social conditions in Spain would have a negative impact on the bank’s business, but is now openly referring to its decision. Election.
We must take into account the context in which this warning occurs, a formal chapter dedicated to the potential risks identified by the bank. For now, that doesn’t mean it’s seen an adverse effect on the economy, or that it’s taken for granted. Company sources recall that the chapter on Risk Factors is aimed at alerting investors to adverse situations that may impact the company, even if remote or immaterial. The content of the risk factors does not reflect BBVA’s position on current issues, but rather is intended to protect the bank against potential legal claims.
Preview version
This is the first time the bank has included this risk factor In its 161-page semi-annual report It was registered with the National Securities Market Commission, where it went unnoticed. Now, it’s included in an early version of the release presentation recorded this Monday, September 11. It refers to previous documents to understand the risks to which the bank is subject and includes a list of “other important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.”
BBVA has filed a prospectus for a contingent convertible bond AT1 (CoCo) denominated in dollars with a 6-year credit option, with BBVA itself, Barclays, HSBC, Morgan Stanley, BofA and Société Générale acting as underwriters. The initial price of the issue is 9.625% (equivalent to 8% in Euro). This is the second launch of CoCo by BBVA so far this year.
A prospectus registration with the SEC allows BBVA to offer securities to a broad investor base that includes the US, Europe and Asia. BBVA intends to be in that market at least once a year. Issuing in dollars also covers BBVA’s parent company’s funding needs in that currency. In September 2022, BBVA placed $1.75 billion in non-priority senior debt issuance in the US market.
Follow all the information economy Y Commercial Inside Facebook Y TwitterOr among us Seminal Newsletter
Five day program
The most important economic quotes of the day, with keys and context to understand their meaning.
Get it in your email
