BCP applies for a debt swap after excluding early payment – obligations

BCP decided not to use the early repayment option for a debt line that was launched on the market in 2017 and which matures within five years, citing market conditions. However, it gives bondholders the option to exchange these bonds for new bonds maturing within 10 years.

Bank led by Miguel Maya reported to Securities Market Commission (CMVM) The “Decision not to exercise an early repayment option” for its €300m subordinated debt issue was issued at a coupon of 4.5% and due in December 2027.

“As such, subject to the final terms, the voucher will be reset to the sum of the ‘average swap’ rate applicable on December 5, 2022 and the initial margin of 4.267% per annum,” he explains.

In view of the decision not to exercise the early repayment option, China’s central bank also announced the launch of a swap offering that will offer existing holders of these bonds “the option and opportunity to exchange them” for new bonds with a maturity of 10 years and three months. Terms of the new offer are not yet known.

The decision not to repay this debt early “was taken after evaluating several factors, including current and unusual market conditions, as well as recognizing the Tier 2 Capital and MREL issuance,” the bank says, adding that it “will evaluate and decide whether to exercise the options.” future early redemption on other instruments on a case-by-case basis.”