Garanti BBVA Launches $750M Subordinated Notes for Growth

Garanti BBVA Unveils $750 Million Subordinated Notes

In an exciting development, Garanti BBVA has announced the completion of the book building process for its issuance of subordinated notes, setting the nominal value at an impressive $750 million. These Tier II notes are designed to appeal to a diverse range of qualified investors and are part of the bank's strategic effort to enhance its capital structure.

Details of the Issuance

The subordinated notes come with a favorable annual interest rate of 8.125%. This offering features a 10-year maturity period, with an enticing option for early redemption available after five years. Specifically, investors may choose to redeem their notes starting January 3, 2035, making it an attractive proposal for those looking to invest.

Trading Location and Investor Focus

For those interested in trading, these notes will be admitted to the Irish Stock Exchange, commonly known as Euronext Dublin. Garanti BBVA is directing its focus towards qualified investors beyond Türkiye, demonstrating the bank's commitment to diversifying its investor base. This strategic move is aimed at fortifying the institution’s capital and broadening its financial reach.

Transaction Completion Timeline

The expectation set by Garanti BBVA positions the transaction completion date for December 3, 2024. This timeline reflects the bank’s commitment to facilitating the sale and ensuring all stakeholders are informed and aligned with regulatory standards.

Commitment to Transparency and Compliance

Garanti BBVA has underscored its dedication to transparency and accountability in this issuance. The bank takes full responsibility for the accuracy of the statements made regarding the subordinated notes. In an effort to clarify any potential misunderstandings, it has been noted that in the case of discrepancies between any Turkish and English announcements, the Turkish version will take precedence.

Engaging with Investors

For investors and stakeholders seeking more information, Garanti BBVA has encouraged direct engagement through its Investor Relations. The contact details for inquiries are available, allowing interested parties to connect with the right resources seamlessly. This open line of communication reflects the bank’s ongoing commitment to maintaining transparency with its investors.

Conclusion: A Strategic Move for Garanti BBVA

The issuance of $750 million subordinated notes marks a significant milestone for Garanti BBVA as it seeks to reinforce its financial foundation and expand its investor community. This development not only showcases the bank's growth ambitions but also highlights its proactive approach to navigating the ever-evolving financial landscape.

Frequently Asked Questions

What are the terms for the subordinated notes issued by Garanti BBVA?

The subordinated notes have a nominal value of $750 million, an annual interest rate of 8.125%, a 10-year maturity period, and an early redemption option after five years.

Where will these subordinated notes be traded?

The notes will be traded on the Irish Stock Exchange, specifically Euronext Dublin, providing access for qualified investors.

When is the expected completion date for the issuance?

The issuance transaction is expected to be completed by December 3, 2024.

What commitment has Garanti BBVA expressed regarding transparency?

Garanti BBVA has affirmed its responsibility for accuracy in its disclosures and encouraged engagement with its Investor Relations for more information, ensuring transparency with investors.

What happens if there is a discrepancy in the announcement versions?

In any case of discrepancy between the Turkish and English versions of the announcement, the Turkish version will prevail, ensuring clarity and accuracy.

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