BPI announced the completion of two issuances of non-preferred senior debt totaling 950 million euros to reinforce the bank's defenses against potential problems. Both operations were fully subscribed by its shareholder, the Spanish Caixabank. The first issuance is for 500 million euros with maturity in November 2031 and optional redemption in November 2030, while the second is for 450 million with maturity in November 2032 and optional redemption one year earlier. The new issuances will have a variable coupon rate, indexed to the 6-month Euribor plus a spread of 0.81% for the 500 million issuance and a spread of 0.90% for the other issuance.
Additionally, BPI also decided to proceed with the early redemption of a non-preferred senior debt issuance of 700 million euros, which was also subscribed by the Spanish shareholder. The bank highlights that these operations aim to maintain eligible liabilities levels for MREL (Minimum Requirement for Own Funds and Eligible Liabilities), in compliance with the permanent fulfillment of the regulatory requirement.
The MREL requirement corresponds to the additional financial cushion that banks must build up to face difficulties, so that, in case there are losses, these instruments are absorbed to restore their respective capital. This reinforcement thus aims to address the increase in the bank's balance sheet, especially in lending.
At the end of June 2026, Banco BPI had an MREL ratio as a percentage of RWA (Risk Weighted Assets) of 28.2% and complied with the MREL requirement in force of 26.6%. After the completion of the new issuances and early redemption mentioned, the proforma MREL ratio in June rises to 29.4%.
