Bloomberg News

BNP Offers 27.5% Discount in Buy Back, Swap of $10 Billion Debt

November 18, 2011

Nov. 17 (Bloomberg) -- BNP Paribas SA is offering to exchange or buy back about $10 billion of subordinated bonds for as little as 72.5 percent of face value as France’s largest bank seeks to boost capital levels.

The lender is offering to buy back two euro- and one pound- denominated Tier 1 issues at minimum prices of between 72.5 percent and 74 percent of par, according to a statement sent to investors. It also wants to exchange eight subordinated dollar, euro and pound issues for new senior transactions, according to two separate statements.

The offers come after Spain’s biggest lender, Banco Santander SA asked holders of 6.8 billion euros ($9.2 billion) of subordinated bonds to exchange their securities for new senior notes, according to a Nov. 15 statement.

BNP noteholders can tender their notes until Nov. 28. Dollar investors have until Dec. 15.

--Editors: Michael Shanahan, Paul Armstrong

To contact the reporter on this story: Esteban Duarte in Madrid at

To contact the editor responsible for this story: Paul Armstrong at

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