Banco Bilbao Vizcaya Argentaria, S.A.
(BBVA), in accordance with the provisions of Securities Market
legislation, hereby communicates the following:
BBVA has reached an agreement with The PNC
Financial Services Group, Inc. for the sale of 100% of the capital
stock of its subsidiary BBVA USA Bancshares, Inc., which in turn
owns all the capital stock of the bank, BBVA USA, as well as other
companies of the BBVA group in the United States with activities
related to this banking business (the “Transaction”).
The agreement reached does not include the sale of
the institutional business of the BBVA group developed through its
broker dealer BBVA Securities Inc. nor the participation in Propel
Venture Partners US Fund I, L.P. (together, the “Excluded
Business”). The Excluded Business will be transferred by BBVA USA
Bancshares, Inc. to entities of the BBVA group prior to the closing
of the Transaction. In addition, BBVA will continue to develop the
wholesale business that it currently carries out through its branch
in New York.
The price of the Transaction amounts to
approximately 11,600 million US dollars (approximately
equivalent to 9,700 million euros)1. The price will be
fully paid in cash.
It is expected that the Transaction would result in
a positive impact on BBVA Group’s Common Equity Tier 1 (fully
loaded) ratio of approximately 300 basis points and positive
results (net of taxes) of approximately 580 million
The closing of the Transaction is subject to
obtaining regulatory authorizations from the competent authorities.
It is estimated that the closing of the Transaction would take
place in mid 2021.
An analyst presentation is convened today at 9:30
a.m. (Madrid Time). The presentation can be followed via BBVA’s
website on the Internet (www.bbva.com). A recording of the
presentation will also be available on the above website, for a
period of at least one month.
Madrid, November 16, 2020
EUR/USD exchange rate of 1.20
The determination of the impact on Common Equity
Tier 1 and the financial results was made taking into consideration
the group’s financial statements as of September 30, 2020 and
a EUR/USD exchange rate of 1.20. The amount of the impact on Common
Equity Tier 1 and the financial results will vary from the date of
this disclosure up to the date of closing of the Transaction due
to, among other circumstances, changes in the book value of the
companies included in the Transaction and changes in the EUR/USD