A total of USD5.12 million of two year notes of JPMorgan Chase & Co with yields worth five times the gains of Banco Bilbao Vizcaya Argentaria SA is being made available to the market. This is the first offering linked to the lender since January 2010.
The securities issued last Oct 8 paid out a maximum of 40% with all capital at risk. This was the information provided in the prospectus filed with the US Securities and Exchange Commission. JPMorgan valued the notes at USD0.95 on the dollar.
According to JPMorgan spokesperson Justin Perras as it declined to make a comment on the offer.
BBVA is Spain' second biggest bank as it issued a contingent convertible bond last April. It is the first European financial institution to sell off shares that comply with the new rules governing balance sheets. The bank would use the proceeds for its Tier 1 capital, it its riskiest. The bonds convert automatically to stock when the Tier 1 ratio falls below 5.125% of assets weighed by risk.
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