Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) said Thursday that 98.7% of holders have accepted its offer to swap preferred shares for convertible bonds, as the Spanish bank seeks to boost its capital ratios.

In a regulatory filing, BBVA, the country's second-largest bank by market value, said it will issue EUR3.43 billion in convertible bonds.

Several Spanish banks recently have launched offers to swap preferred shares for ordinary shares or convertible bonds, as preferred shares won't count as capital under stricter European Banking Association rules. European banks must comply with the new capital rules by June 2012.

BBVA said the swap will increase its capital ratio to above 8%. The convertible bonds will pay an annual interest rate of about 6.5%.

-By Pablo Dominguez, EFE Dow Jones; 34 91 395 8120; pablo.dominguez@dowjones.com

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