January - September 2012


The most important deals carried out by the different CIB departments on the third quarter of 2012 are summarized below:

In Corporate Finance, BBVA is leader in Spain as advisor in transactions. According to Thomson Reuters, the Group has advised in 49 deals since 2009. Recently it worked with Cementos Portland in a private placement underwritten by the U.S. Blackstone Group, and with Enagás on the acquisition of 90% of Naturgas Energía Transporte. In America, BBVA has continued to strengthen its franchise, particularly in Mexico, where it is currently very active.

In Equity Capital Markets, the Bank has been joint bookrunner in the domestic initial public offering (IPO) of Santander Mexico, worth €3,179m. This was the third biggest deal this year at global level and the second biggest ever in Latin America.

Corporate Lending has maintained its leading position in Spain in bilateral and syndicated loans (including FCC, Abertis and Cementos Portland). In the Untied States, BBVA continues to strengthen the Compass franchise with numerous syndicated deals (including Avon, Best Buy and H&R Block). In Latin America, it has maintained its leading position thanks to the promotion of both bilateral and syndicated loans in Mexico (including Comex, Frisa, Kaluz) and Colombia (UNE).

Project Finance continues to be leader in Europe, with the completion of deals including structured finance for hospitals in Tuscany (Italy) and the Carrington combined-cycle plant in the United Kingdom. In Latin America the Bank has led operations in renewable energy (loan and project bonds in Oaxaca, Mexico), conventional energy (hydropower plant in Cerro del Águila, Peru, and combined-cycle plant in Salamanca, Mexico) and infrastructures (project bond for Red de Carreteras de Occidente in Mexico). In the United States it was mandated lead arranger in the finance of Sabine Pass and in financing parking lots in Ohio and in Parkway prison.

Leveraged Finance has also confirmed its leading position in Spain. It has structured and collaborated on four leveraged acquisitions in various sectors. In Europe it was mandated lead arranger in the finance of a leveraged buy-out (LBO) in Italy for one of the biggest global financial investors.

Structured Trade Finance increased its CESCE-backed guarantee activity in Spain, and a credit line for FCC stands-out. In the rest of Europe BBVA has a major position financing exports, particularly to Latin American countries, Turkey and Asia, and participating in new programs developed by European export credit agencies (ECAs). In Asia BBVA has closed the second tranche of the buyer’s credit line for Telefónica-Huawei with China Development Bank and Industrial & Commercial Bank of China.

In Global Transactional Banking the fund gathering operations and customer deposits are worth mentioning. In Spain, tax management for over €300m and a deposit of USD 300m was arranged with the leading oil company. In Mexico an exclusive agreement was closed to offer services for card-payment terminals, payrolls and commercial alliances with one of the most important groups in the country. Three requests for proposals (RFPs) were awarded in Portugal and Mexico. These are generating new transactional business, in particular payment management and international collection, with the leading telecommunications company in Portugal. Finally, “BBVA net cash” received the “Best Web Design in Latin America” award from Global Finance. The “BBVA global net cash” on-line banking system was also launched, giving multinational companies a global connection with the capacity to operate at local level.

Global Markets has continued to grow in an environment affected by economic and financial tension linked to instability in Europe and political change in the United States. Gross income amounted to €867m, an increase of 9.3% on the first nine months of 2011. This growth was boosted by the continued participation of Global Markets in solutions for its clients, thus providing stable franchise revenue for the unit.

In Spain Global Markets achieved good earnings figures: total mark-to-market revenue increased by over 20% year-on-year. SMEs, and the retail and corporate customer segments posted the biggest growth. By product type, interest rates, exchange rates and lending have increased at double-digit rates in year- on-year terms. BBVA continues to be the market leader in equity brokerage, with a market share of 16.4% in September 2012, nearly 9 percentage points above its nearest competitor. BBVA Research obtained an award as best stock-market analyst from Thomson Reuters for the quality of its forecasting and recommendations.

In Eurasia, revenue from SMEs and retail customers has grown above 40% compared with the cumulative total through September 2011. There was a notable increase in total franchise revenue from the Milan (up 60%) and Taiwan trading floors, the latter practically tripling its earnings compared with the same period in 2011.

In Mexico, Global Markets is still well positioned to take advantage of the country’s positive economic situation. This environment has helped customer revenue to perform well, as all the products posted positive results. As a result of the above, Global Markets gross income grew 80.4% year-on-year.

BBVA in South America continues to boost its local distribution capacity. Global Markets revenue in the area increased by 25.9% year-on-year.

In the United States revenue from interest rates was particularly good, with a rise of 47% on the first nine months of 2011. BBVA is continuing to make progress in its strategy to integrate the business, focusing on its competitive advantages: the Compass distribution network, its know-how in derivatives and its Latin American products as a differentiating factor for investors.