As filed with the Securities and Exchange Commission on June 28, 2010
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM F-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
(Exact Name of Registrant as Specified in Its Charter)
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Kingdom of Spain
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Not Applicable
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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Plaza de San Nicolás, 4
48005 Bilbao
Spain
+34-91-537-7000
+34-91-374-6000
(Address and telephone number of Registrants principal executive offices)
BBVA INTERNATIONAL PREFERRED, S.A. UNIPERSONAL
(Exact Name of Registrant as Specified in Its Charter)
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Kingdom of Spain
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Not Applicable
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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Gran Vía, 1
48001 Bilbao
Spain
+34-91-537-7000
+34-91-374-6000
(Address and telephone number of Registrants principal executive offices)
BBVA U.S. SENIOR, S.A. UNIPERSONAL
(Exact Name of Registrant as Specified in Its Charter)
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Kingdom of Spain
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Not Applicable
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Gran Vía, 1
48001 Bilbao
Spain
+34-91-537-7000
+34-91-374-6000
(Address and telephone number of Registrants principal executive offices)
BBVA SUBORDINATED CAPITAL, S.A. UNIPERSONAL
(Exact Name of Registrant as Specified in Its Charter)
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Kingdom of Spain
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Not Applicable
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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Gran Vía, 1
48001 Bilbao
Spain
+34-91-537-7000
+34-91-374-6000
(Address and telephone number of Registrants principal executive offices)
Emilio Juan de las Heras Muela
Banco Bilbao Vizcaya Argentaria, S.A.
New York Branch
1345 Avenue of the Americas, 45th Floor
New York, New York 10105
+1-212-728-1660
(Name, address, and telephone number of agent for service)
Please send copies of all communications to:
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Michael J. Willisch
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Vivian Root
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Davis Polk & Wardwell LLP
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Sidley Austin LLP
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Paseo de la Castellana, 41
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Woolgate Exchange
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28046 Madrid, Spain
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25 Basinghall Street
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+34-91-768-9610
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London EC2V 5HA, England
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+44-207-360-2045
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Approximate date of commencement of proposed sale to the public:
From time to time after
this Registration Statement becomes effective.
If only securities being registered on this Form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box.
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If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
þ
If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.
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If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
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If this Form is a registration statement pursuant to General Instruction I.C. or a
post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box.
þ
If this Form is a post-effective amendment to a registration statement filed pursuant to
General Instruction I.C. filed to register additional securities or additional classes of
securities pursuant to Rule 413(b) under the Securities Act, check the following box.
o
CALCULATION OF REGISTRATION FEE
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Proposed maximum
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Proposed maximum
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Amount to be
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offering price per
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aggregate offering
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Amount of
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Title of each class of securities to be registered
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registered
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unit
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price
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registration fee
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Ordinary Shares of Banco Bilbao Vizcaya Argentaria,
S.A., par value 0.49 per share (2)
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(1)
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(1)
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(1)
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(1)
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Rights to subscribe for Ordinary Shares of Banco
Bilbao Vizcaya Argentaria, S.A. (including in the
form of American Depositary Shares) (3)
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Preferred Securities of BBVA International
Preferred, S.A. Unipersonal
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Senior Debt Securities of BBVA U.S. Senior, S.A.
Unipersonal
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Subordinated Debt Securities of BBVA Subordinated
Capital, S.A. Unipersonal
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Guarantees of Banco Bilbao Vizcaya Argentaria,
S.A. in connection with the Preferred Securities,
the Senior Debt Securities and the Subordinated
Debt Securities (4)
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(1)
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An indeterminate aggregate initial offering price and number or amount of securities of each
identified class is being registered as may from time to time be offered at indeterminate
prices. Separate consideration may or may not be received for securities that are issuable on
exercise, conversion or exchange of other securities or that are represented by depositary
shares. In accordance with Rules 456(b) and 457(r), the registrants are deferring payment of
all registration fees.
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(2)
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A separate registration statement on Form F-6 (Registration No. 333-142862) has been filed
with respect to the American Depositary Shares evidenced by the American Depositary Receipts
issuable upon deposit of the ordinary shares registered hereby. Each American Depositary Share
represents one ordinary share of Banco Bilbao Vizcaya Argentaria, S.A.
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(3)
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No separate consideration will be received for the rights.
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(4)
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No separate consideration will be received for the Guarantees in connection with the
Preferred Securities, the Senior Debt Securities and the Subordinated Debt Securities.
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PROSPECTUS
Banco Bilbao Vizcaya Argentaria, S.A.
Ordinary Shares
American Depositary Shares, each representing one Ordinary Share
Rights to Subscribe for Ordinary Shares
BBVA International Preferred, S.A. Unipersonal
Preferred Securities
Fully, irrevocably and unconditionally guaranteed, on a subordinated basis, as described in this prospectus, by
Banco Bilbao Vizcaya Argentaria, S.A.
BBVA U.S. Senior, S.A. Unipersonal
Senior Debt Securities
Fully, irrevocably and unconditionally guaranteed, on a senior basis, as described in this prospectus, by
Banco Bilbao Vizcaya Argentaria, S.A.
BBVA Subordinated Capital, S.A. Unipersonal
Subordinated Debt Securities
Fully, irrevocably and unconditionally guaranteed, on a subordinated basis, as described in this prospectus, by
Banco Bilbao Vizcaya Argentaria, S.A.
Banco Bilbao Vizcaya Argentaria, S.A. may offer from time to time ordinary shares, American
Depositary Shares (each representing one ordinary share, commonly referred to as ADSs) or rights to
subscribe for ordinary shares (including in the form of ADSs), in one or more offerings.
BBVA International Preferred, S.A. Unipersonal may offer from time to time preferred
securities in one or more offerings. The preferred securities will be fully, irrevocably and
unconditionally guaranteed on a subordinated basis, as described in this prospectus, by Banco
Bilbao Vizcaya Argentaria, S.A.
BBVA U.S. Senior, S.A. Unipersonal may offer from time to time senior debt securities in one
or more offerings. The senior debt securities will be fully, irrevocably and unconditionally
guaranteed on a senior basis, as described in this prospectus, by Banco Bilbao Vizcaya Argentaria,
S.A.
BBVA Subordinated Capital, S.A. Unipersonal may offer from time to time subordinated debt
securities in one or more offerings. The subordinated debt securities will be fully, irrevocably
and unconditionally guaranteed on a subordinated basis, as described in this prospectus, by Banco
Bilbao Vizcaya Argentaria, S.A.
This prospectus describes the general terms of these securities and the general manner in
which we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal and
BBVA Subordinated Capital, S.A. Unipersonal will offer these securities. The specific terms of any
securities we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal
or BBVA Subordinated Capital, S.A. Unipersonal offer will be included in a supplement to this
prospectus. The applicable prospectus supplement will also describe the specific manner in which
we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal or BBVA
Subordinated Capital, S.A. Unipersonal will offer the securities. Such supplements may also add to,
update, supplement or clarify information contained in the prospectus. We will not use this
prospectus to issue any securities unless it is attached to a prospectus supplement.
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We may offer and sell these securities to or through one or more underwriters, dealers and
agents, or directly to purchasers, on a delayed or continuous basis. We will indicate the names of
any underwriters in the applicable prospectus supplement.
Our ordinary shares are listed on each of the Madrid, Barcelona, Bilbao and Valencia stock
exchanges (the Spanish Stock Exchanges) and quoted on the Automated Quotation System of the
Spanish Stock Exchanges (the Automated Quotation System) as well as quoted on SEAQ International
in London. Our ordinary shares are also listed on the London and Mexico stock exchanges. Our
ordinary shares in the form of ADSs are listed on the New York Stock Exchange and are also traded
on the Lima (Peru) Stock Exchange by virtue of an exchange agreement entered into between these two
exchanges. If we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A.
Unipersonal or BBVA Subordinated Capital, S.A. Unipersonal decide to list any of the other
securities on a national securities exchange upon issuance, the applicable prospectus supplement to
this prospectus will identify the exchange and the date when we expect trading to begin.
Investing in our, BBVA International Preferred, S.A. Unipersonals, BBVA U.S. Senior, S.A.
Unipersonals and BBVA Subordinated Capital, S.A. Unipersonals securities involves risks. See
Risk Factors beginning on page 3.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any
representation to the contrary is a criminal offense.
The securities are not deposits or savings accounts and are not insured by the Federal Deposit
Insurance Corporation or any other governmental agency of the Kingdom of Spain, the United States
or any other jurisdiction.
The date of this prospectus is June 28, 2010.
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You should rely only on the information contained in or incorporated by reference in this
prospectus. Neither we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A.
Unipersonal, nor BBVA Subordinated Capital, S.A. Unipersonal, nor any underwriter has authorized
anyone to provide you with different information. Neither we, BBVA International Preferred, S.A.
Unipersonal, BBVA U.S. Senior, S.A. Unipersonal, BBVA Subordinated Capital, S.A. Unipersonal, nor
any underwriter is making an offer of these securities in any jurisdiction where the offer is not
permitted. You should not assume that the information contained in or incorporated by reference in
this prospectus is accurate as of any date other than the date on the front cover of this
prospectus.
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TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of registration statements that we, BBVA International Preferred, S.A.
Unipersonal, BBVA U.S. Senior, S.A. Unipersonal and BBVA Subordinated Capital, S.A. Unipersonal
filed with the Securities and Exchange Commission (the SEC), utilizing a shelf registration
process. Under this shelf registration process, we, BBVA International Preferred, S.A.
Unipersonal, BBVA U.S. Senior, S.A. Unipersonal and/or BBVA Subordinated Capital, S.A. Unipersonal
may sell any combination of the securities described in this prospectus in one or more offerings.
This prospectus provides you with a general description of the securities we, BBVA
International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal, and BBVA
Subordinated Capital, S.A. Unipersonal, may offer. Each time we, BBVA International Preferred,
S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal, or BBVA Subordinated Capital, S.A.
Unipersonal, sell securities, we, BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior,
S.A. Unipersonal, and/or BBVA Subordinated Capital, S.A. Unipersonal, as the case may be, will
provide a prospectus supplement containing specific information about the terms of that offering.
The prospectus supplement may also add, update or change information contained in this prospectus.
If a prospectus supplement is inconsistent with this prospectus, the terms of the prospectus
supplement will control. Therefore, the statements made in this prospectus may not be the terms
that apply to the securities you purchase.
You should read both this prospectus and any applicable
prospectus supplement together with additional information described under the heading
Incorporation of Documents by Reference.
In this prospectus, the terms we, us, our, Bank, BBVA, and Guarantor refer to
Banco Bilbao Vizcaya Argentaria, S.A., unless otherwise indicated or the context otherwise
requires. BBVA Group refers to Banco Bilbao Vizcaya Argentaria, S.A. and its consolidated
subsidiaries, unless otherwise indicated or the context otherwise requires.
The terms subsidiary issuer, subsidiary issuers, issuer and issuers refer to BBVA
International Preferred, S.A. Unipersonal, BBVA U.S. Senior, S.A. Unipersonal and BBVA Subordinated
Capital, S.A.
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Unipersonal or to any one of them. Banco Bilbao Vizcaya Argentaria, S.A. has guaranteed
securities previously issued by BBVA International Preferred, S.A. Unipersonal, BBVA U.S. Senior,
S.A. Unipersonal and BBVA Subordinated Capital, S.A. Unipersonal and will fully, irrevocably and
unconditionally guarantee any securities issued by them pursuant to this prospectus.
The term BBVA International Preferred refers to BBVA International Preferred, S.A.
Unipersonal; the term BBVA U.S. Senior refers to BBVA U.S. Senior, S.A. Unipersonal; and the term
BBVA Subordinated Capital refers to BBVA Subordinated Capital, S.A. Unipersonal. Each of BBVA
International Preferred, BBVA U.S. Senior and BBVA Subordinated Capital is also referred to as a
subsidiary issuer and they are collectively referred to as subsidiary issuers.
All references to the shares are to the ordinary shares of BBVA, par value 0.49 per share;
all references to the ADSs are to the American Depositary Shares of BBVA, each representing one
share; all references to the ADRs are to the American Depositary Receipts of BBVA, each
representing one ADS; all references to the rights are to the rights to subscribe for our
ordinary shares (including in the form of ADSs); all references to the preferred securities are
to the preferred securities of BBVA International Preferred; all references to the senior notes
are to the senior debt securities of BBVA U.S. Senior; and all reference to the subordinated
notes are to the subordinated debt securities of BBVA Subordinated Capital. References to the
notes are to the senior notes and the subordinated notes, collectively. All references to a
preferred security guarantee are to a guarantee by the Guarantor of a preferred security; all
references to a senior guarantee are to a guarantee by the Guarantor of a senior note; all
references to a subordinated guarantee are to a guarantee by the Guarantor of a subordinated
note; and all references to the notes guarantees are to the senior guarantees and the
subordinated guarantees, collectively. All references to the securities are to the shares,
rights, ADSs, the preferred securities, the notes, the preferred securities guarantee and the notes
guarantees, collectively.
All references to Spain refer to the Kingdom of Spain.
In this prospectus and any prospectus supplement, $, US$, U.S. dollars and dollars
refer to United States dollars; and euro refer to euro; £ refers to pounds sterling and ¥
refers to Japanese yen.
WHERE YOU CAN FIND MORE INFORMATION
Ongoing Reporting
We file annual reports on Form 20-F with, and furnish other reports and information on Form
6-K to, the SEC. You may read and copy any document we file with, or furnish to, the SEC at the
SECs Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call
the SEC at +1-800-SEC-0330 for more information about the SECs Public Reference Room. The SEC also
maintains an Internet site at http://www.sec.gov that contains in electronic form the reports and
other information that we have electronically filed with, or furnished to, the SEC. You may also
read this material at the offices of the New York Stock Exchange, Inc. at 20 Broad Street, New
York, New York 10005. In addition, the securities may specify that certain documents are available
for inspection at the office of the trustee, a paying agent or the ADR depositary, as the case may
be.
INCORPORATION OF DOCUMENTS BY REFERENCE
The rules of the SEC allow us and the subsidiary issuers to incorporate by reference the
information we file with, or furnish to, the SEC, which means:
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incorporated documents are considered part of this prospectus;
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we and the subsidiary issuers can disclose important information to you by referring you
to those documents; and
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information that we file with, or furnish to, the SEC in the future and incorporate by
reference in this prospectus will automatically update and supersede information in this
prospectus and information previously incorporated by reference in this prospectus.
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We and the subsidiary issuers incorporate by reference the following documents:
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our annual report on Form 20-F for the fiscal year ended December 31, 2009 (the 2009
Form 20-F) filed with the SEC on March 26, 2010;
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our report on Form 6-K as furnished to the SEC on June 24, 2010 (the March 31, 2010
Form 6-K); and
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any filings made by us with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the
Securities Exchange Act of 1934, as amended, as well as any report on Form 6-K furnished to
the SEC to the extent the Form 6-K expressly states that it is being incorporated by
reference herein, on or after the date of this prospectus and prior to the termination of
the relevant offering under this prospectus.
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You may request, at no cost to you, a copy of these documents (other than exhibits not
specifically incorporated by reference) by writing or telephoning us at the following address or
telephone number:
Banco Bilbao Vizcaya Argentaria, S.A.
New York Branch
1345 Avenue of the Americas, 45th Floor
New York, New York 10105
Attention: Investor Relations
+1-212-728-1660
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FORWARD-LOOKING STATEMENTS
Some of the statements included in this prospectus are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. We also may make forward-looking
statements in our other documents filed with, or furnished to, the SEC that are incorporated by
reference into this prospectus. Forward-looking statements can be identified by the use of
forward-looking terminology such as believe, expect, estimate, project, anticipate,
should, intend, probability, risk, VaR, target, goal, objective, or by the use of
similar expressions or variations on such expressions, or by the discussion of strategy or
objectives. Forward-looking statements are based on current plans, estimates and projections, and
are subject to inherent risks, uncertainties and other factors that could cause actual results to
differ materially from the future results expressed or implied by such forward-looking statements.
In particular, this prospectus and certain documents incorporated by reference into this
prospectus include forward-looking statements relating but not limited to management objectives,
the implementation of our strategic initiatives, trends in results of operations, margins, costs,
return on equity and risk management, including our potential exposure to various types of risk
such as market risk, interest rate risk, currency risk and equity risk. For example, certain of
the market risk disclosures are dependent on choices about key model characteristics, assumptions
and estimates, and are subject to various limitations. By their nature, certain market risk
disclosures are only estimates and could be materially different from what actually occurs in the
future.
We have identified some of the risks inherent in forward-looking statements in Item 3. Key
InformationRisk Factors, Item 4. Information on the Company, Item 5. Operating and
Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures About Market
Risk in our 2009 Form 20-F. Other factors could also adversely affect our and the subsidiary
issuers results or the accuracy of forward-looking statements in this prospectus, and you should
not consider the factors discussed here or in the Items in our 2009 Form 20-F listed above to be a
complete set of all potential risks or uncertainties. Other important factors that could cause
actual results to differ materially from those in forward-looking statements include, among others:
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general political, economic and business conditions in Spain, the European Union (EU),
Latin America, the United States and other regions, countries or territories in which we
operate;
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changes in applicable laws and regulations, including taxes;
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the monetary, interest rate and other policies of central banks in Spain, the EU, the
United States, Mexico and elsewhere;
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changes or volatility in interest rates, foreign exchange rates (including the euro to
U.S. dollar exchange rate), asset prices, equity markets, commodity prices, inflation or
deflation;
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ongoing market adjustments in the real estate sectors in Spain, the United States and
Mexico;
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the effects of competition in the markets in which we operate, which may be influenced
by regulation or deregulation;
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changes in consumer spending and savings habits, including changes in government
policies which may influence investment decisions;
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our ability to hedge certain risks economically;
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our success in managing the risks involved in the foregoing, which depends, among other
things, on our ability to anticipate events that cannot be captured by the statistical
models we use; and
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force majeure
and other events beyond our control.
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1
The forward-looking statements made in this prospectus speak only as of the date of this
prospectus. Neither we nor any of the subsidiary issuers intend to publicly update or revise these
forward-looking statements to reflect events or circumstances after the date of this prospectus,
including, without limitation, changes in our business or acquisition strategy or planned capital
expenditures or to reflect the occurrence of unanticipated events, and neither we nor any of the
subsidiary issuers assume any responsibility to do so. You should, however, consult any further
disclosures of a forward-looking nature we may make in our other documents filed with, or furnished
to, the SEC that are incorporated by reference into this prospectus.
2
RISK FACTORS
You should carefully consider the risk factors contained in the applicable prospectus
supplement and the documents incorporated by reference into this prospectus, including, but not
limited to, those risks factors in Item 3. Key InformationRisk Factors in our 2009 Form 20-F
when deciding whether to invest in the securities being offered pursuant to this prospectus. In
addition, investing in the securities involves risks. Any of the risks described in the applicable
prospectus supplement or in our 2009 Form 20-F, if they actually occur, could materially and
adversely affect our and/or any of the subsidiary issuers business, results of operations,
prospects and financial condition and the value of your
investments.
3
THE BBVA GROUP
BBVA is a highly diversified financial group, with strengths in the traditional banking
businesses of retail banking, asset management, private banking and wholesale banking. BBVAs
predecessor bank, Banco Bilbao Vizcaya, referred to as BBV, was incorporated in Spain on October
1, 1988. BBVA was formed as the result of a merger by absorption of Argentaria, Caja Postal y Banco
Hipotecario, S.A. into BBV that was approved by the shareholders of each institution on December
18, 1999 and registered on January 28, 2000. Additionally, BBVA maintains business activity in
other sectors, such as the insurance, real estate and operational leasing sectors as well as other
business activities. It also has a portfolio of investments in some of Spains leading companies.
BBVA, which operates in over 30 countries, is based in Spain and has substantial banking interests
in Latin America, the United States, Europe and Asia. The BBVA group had consolidated assets of
553,922 million at March 31, 2010 and net income attributed to parent company of 1,240 million
for the three months ended March 31, 2010.
Additional information about BBVA and its subsidiaries is included in the 2009 Form 20-F and
the March 31, 2010 Form 6-K, which are incorporated by reference in this document.
BBVAs principal executive offices are located at Paseo de la Castellana, 81, 28046 Madrid,
Spain, and its telephone number at that location is +34-91-537-7000.
THE SUBSIDIARY ISSUERS
BBVA International Preferred
BBVA International Preferred was incorporated by a public deed executed on June 30, 2005, and
registered in the Mercantile Registry of Vizcaya on July 8, 2005 as a company with unlimited
duration and with limited liability under the laws of Spain (
sociedad anónima
). The registered
office of BBVA International Preferred is located at Gran Vía, 1, 48001 Bilbao, Spain, and its
principal office is located at Paseo de la Castellana, 81, 28046 Madrid, Spain, with telephone
number +34-91-537-7000 or +34-91-374-6000.
As of the date of this prospectus, BBVA International Preferred has issued the following:
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Series
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Description
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Issue Date
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Issue Amount
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Outstanding Amount
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A
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Step-Up
Fixed/Floating Rate
Non-Cumulative
Perpetual
Guaranteed
Preferred
Securities of
50,000 liquidation
preference
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September 22, 2005
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550,000,000
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85,550,000
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B
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Step-Up
Fixed/Floating Rate
Non-Cumulative
Perpetual
Guaranteed
Preferred
Securities of
50,000 liquidation
preference
|
|
September 20, 2006
|
|
|
500,000,000
|
|
|
|
164,350,000
|
|
|
C
|
|
Fixed/Floating Rate
Non-Cumulative
Perpetual
Guaranteed
Preferred
Securities of
$1,000 liquidation
preference
|
|
April 18, 2007
|
|
$
|
600,000,000
|
|
|
$
|
600,000,000
|
|
|
D
|
|
Non-Step-Up
Fixed/Floating Rate
Non-Cumulative
Perpetual
Guaranteed
Preferred
Securities of
£50,000 liquidation
preference
|
|
July 19, 2007
|
|
£
|
400,000,000
|
|
|
£
|
31,200,000
|
|
|
E
|
|
Non-Step-Up
Fixed/Floating
Non-Cumulative
Perpetual
Guaranteed
Preferred
Securities of
50,000 liquidation
preference
|
|
October 21, 2009
|
|
|
644,650,000
|
|
|
|
644,650,000
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Series
|
|
Description
|
|
Issue Date
|
|
Issue Amount
|
|
Outstanding Amount
|
F
|
|
Non-Step-Up
Fixed/Floating
Perpetual
Guaranteed
Preferred
Securities of
£50,000 liquidation
preference
|
|
October 21, 2009
|
|
£
|
251,050,000
|
|
|
£
|
251,050,000
|
|
The authorized share capital of BBVA International Preferred is 60,102 divided into
10,017 ordinary shares, each with a par value of 6. The subscribed and fully paid up share capital
is 60,102.
All of the ordinary shares of BBVA International Preferred are owned, directly or indirectly,
by us. BBVA International Preferred has no subsidiaries. BBVA International Preferred exists for
the purpose of issuing preferred securities, the proceeds of which, in accordance with Spanish law,
will be deposited with us.
BBVA U.S. Senior
BBVA U.S. Senior was incorporated by a public deed executed on February 22, 2006 and
registered in the Mercantile Registry of Vizcaya on February 28, 2006 as a company with unlimited
duration and with limited liability under the laws of Spain (
sociedad anónima
). The registered
office of BBVA U.S. Senior is located at Gran Vía, 1, 48001 Bilbao, Spain, and its principal office
is located at Paseo de la Castellana, 81, 28046 Madrid, Spain, and its telephone number is
+34-91-537-7000 or +34-91-374-6000.
As of the date of this prospectus, BBVA U.S. Senior has issued the following:
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Issue Date
|
|
Issue Amount
|
|
Outstanding Amount
|
Floating Rate Notes due 2013
|
|
November 12, 2009
|
|
$
|
200,000,000
|
|
|
$
|
200,000,000
|
|
|
Floating Rate Notes due 2011
|
|
November 24, 2009
|
|
|
1,000,000,000
|
|
|
|
1,000,000,000
|
|
The authorized share capital of BBVA U.S. Senior is 60,102 divided into 10,017 ordinary
shares, each with a par value of 6. The subscribed and fully paid up share capital is 60,102.
All of the ordinary shares of BBVA U.S. Senior are owned, directly or indirectly, by us. BBVA
U.S. Senior exists for the purpose of issuing debt securities, the proceeds of which, in accordance
with Spanish law, will be deposited with us. BBVA U.S. Senior does not have any subsidiaries.
BBVA Subordinated Capital
BBVA Subordinated Capital was incorporated by a public deed executed on October 29, 2004 and
registered in the Mercantile Registry of Vizcaya on November 3, 2004 as a company with unlimited
duration and with limited liability under the laws of Spain (
sociedad anónima
). The registered
office of BBVA Subordinated Capital is located at Gran Vía, 1, 48001 Bilbao, Spain, and its
principal office is located at Paseo de la Castellana, 81, 28046 Madrid, Spain, and its telephone
number is +34-91-537-7000 or +34-91-374-6000.
As of the date of this prospectus, BBVA Subordinated Capital has issued the following:
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Issue Date
|
|
Issue Amount
|
|
Outstanding Amount
|
Floating Rate Subordinated Callable
Step-Up Notes due 2017
|
|
May 23, 2005
|
|
|
500,000,000
|
|
|
|
458,600,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2020
|
|
October 13, 2005
|
|
|
150,000,000
|
|
|
|
129,700,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2017
|
|
October 20, 2005
|
|
|
250,000,000
|
|
|
|
231,150,000
|
|
|
Fixed Rate Subordinated Notes due 2035
|
|
October 21, 2005
|
|
¥
|
20,000,000,000
|
|
|
¥
|
20,000,000,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2015
|
|
October 21, 2005
|
|
£
|
300,000,000
|
|
|
£
|
245,700,000
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Issue Date
|
|
Issue Amount
|
|
Outstanding Amount
|
Floating Rate Subordinated Callable
Step-Up Notes due 2016
|
|
March 31, 2006
|
|
£
|
300,000,000
|
|
|
£
|
288,650,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2016
|
|
October 23, 2006
|
|
|
1,000,000,000
|
|
|
|
900,000,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2018
|
|
March 9, 2007
|
|
£
|
250,000,000
|
|
|
£
|
250,000,000
|
|
|
Floating Rate Subordinated Callable
Step-Up Notes due 2017
|
|
April 3, 2007
|
|
|
750,000,000
|
|
|
|
699,500,000
|
|
|
Subordinated Linked Notes due 2022
|
|
April 4, 2007
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
Fixed Rate to Inflation Linked
Subordinated Notes due 2023
|
|
May 19, 2008
|
|
|
50,000,000
|
|
|
|
50,000,000
|
|
|
Fixed Rate Subordinated Notes due 2018
|
|
July 22, 2008
|
|
|
20,000,000
|
|
|
|
20,000,000
|
|
The authorized share capital of BBVA Subordinated Capital is 60,102 divided into 10,017
ordinary shares, each with a par value of 6. The subscribed and fully paid up share capital is
60,102.
All of the ordinary shares of BBVA Subordinated Capital are owned, directly or indirectly, by
us. BBVA Subordinated Capital exists for the purpose of issuing debt securities, the proceeds of
which, in accordance with Spanish law, will be deposited with us. BBVA Subordinated Capital does
not have any subsidiaries.
6
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES AND PREFERENCE DIVIDENDS
The following table sets forth BBVAs consolidated ratio of earnings to fixed charges and
preference dividends, using financial information compiled in accordance with International
Financial Reporting Standards adopted by the EU (EU-IFRS) required to be applied under the Bank
of Spains Circular 4/2004 (Circular 4/2004), for the three months ended March 31, 2010 and the
years ended December 31, 2009, 2008, 2007, 2006 and 2005:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
March 31,
|
|
Year ended December 31,
|
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
2006
|
|
2005
|
EU-IFRS
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of earnings to fixed
charges and preference dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including interest on deposits
|
|
|
2.00
|
|
|
|
1.57
|
|
|
|
1.40
|
|
|
|
1.54
|
|
|
|
1.64
|
|
|
|
1.64
|
|
Excluding interest on deposits
|
|
|
2.62
|
|
|
|
2.04
|
|
|
|
1.82
|
|
|
|
2.06
|
|
|
|
2.27
|
|
|
|
2.27
|
|
|
|
|
(1)
|
|
EU-IFRS required to be applied under Circular 4/2004.
|
7
USE OF PROCEEDS
The net proceeds from each issue of securities will, in accordance with Law 13/1985 of May 25,
1985, be deposited on a permanent basis with the Guarantor and will be used for the Groups general
corporate purposes. If, in respect of any particular issue, there is a particular identified use of
proceeds, this will be stated in the applicable prospectus supplement.
8
CONSOLIDATED CAPITALIZATION AND INDEBTEDNESS OF THE BBVA GROUP
The following table sets forth the capitalization and indebtedness of the BBVA Group on an
unaudited consolidated basis in accordance with EU-IFRS required to be applied under Circular
4/2004 as of April 30, 2010.
|
|
|
|
|
|
|
As of
|
|
|
April 30, 2010
|
|
|
(millions of euros)
|
|
|
(unaudited)
|
Outstanding indebtedness
(1)
|
|
|
|
|
Short-term indebtedness(2)
|
|
|
44,085
|
|
Long-term indebtedness
|
|
|
75,599
|
|
Of which: Preferred securities(3)
|
|
|
5,255
|
|
|
|
|
|
|
Total indebtedness(4)
|
|
|
119,684
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity
|
|
|
|
|
Ordinary shares, nominal value 0.49 each
|
|
|
1,837
|
|
Ordinary shares held by consolidated companies
|
|
|
447
|
|
Reserves
|
|
|
27,134
|
|
Dividends
|
|
|
|
|
Valuation adjustments
|
|
|
528
|
|
Net income attributed to the BBVA Group(5)
|
|
|
1,730
|
|
Total shareholders equity
|
|
|
31,675
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
|
1,279
|
|
|
|
|
|
|
Total capitalization and indebtedness
|
|
|
152,638
|
|
|
|
|
|
|
|
|
|
(1)
|
|
No third party has guaranteed any of the debt of the BBVA Group.
|
|
(2)
|
|
Includes all outstanding promissory notes and bonds, debentures and subordinated debt
(including preferred securities) with a remaining maturity of up to one year as of April 30,
2010.
|
|
(3)
|
|
Under EU-IFRS required to be applied under Circular 4/2004, preferred securities, such as the
preferred securities described in this prospectus, are accounted for as subordinated debt.
Nonetheless, for Bank of Spain regulatory capital purposes, such preferred securities are
treated as Tier 1 capital instruments.
|
|
(4)
|
|
35% of the BBVA Groups indebtedness was secured as of April 30, 2010.
|
|
(5)
|
|
For the period from January 1, 2010 to April 30, 2010.
|
9
DESCRIPTION OF BBVA ORDINARY SHARES
The following summary describes all material considerations concerning the capital stock of
BBVA and briefly describes all material provisions of BBVAs bylaws (
estatutos
) and relevant
Spanish law. A copy of BBVAs bylaws is incorporated by reference and will be furnished to
investors upon request.
General
As of March 31, 2010, BBVAs paid in share capital was 1,836,504,869.29, represented by a
single class of 3,747,969,121 BBVA ordinary shares with a nominal value of 0.49 each.
Non-residents of Spain may hold and vote ordinary shares subject to the general restrictions
set forth below.
Attendance and Voting at Shareholders Meetings
Each BBVA ordinary share entitles the shareholder to one vote. Any BBVA ordinary share may be
voted by written proxy. Proxies may be given only to another shareholder. Proxies are valid for
ordinary and extraordinary general shareholders meetings. A single shareholder may not be
represented at a general shareholders meeting by more than one shareholder.
Shareholders meetings
Pursuant to BBVAs bylaws and to the Spanish Corporation Law (
Ley de Sociedades Anónimas
),
general meetings of shareholders of BBVA may be ordinary or extraordinary.
Pursuant to the Spanish Corporation Law, ordinary general shareholders meetings shall
necessarily be held within the first six months of each financial year, at which shareholders are
requested to approve the annual accounts of the previous fiscal year, the management by BBVA Board
of Directors of BBVA for the previous fiscal year and the application of BBVAs net income or loss.
Other matters may also be voted on by shareholders during the ordinary general shareholders
meetings if such items are included on the agenda. Any other meetings of shareholders are
considered to be extraordinary general shareholders meetings. Extraordinary general shareholders
meetings may be called from time to time by the BBVA Board of Directors at its discretion. The BBVA
Board of Directors must call extraordinary general shareholders meetings if so requested by
shareholders representing at least five percent of BBVAs share capital.
At ordinary general shareholders meetings, shareholders are requested to approve the BBVA
Board of Directors management of BBVA for the previous fiscal year, the annual accounts of the
previous fiscal year and the application of the companys net income or loss. All other matters may
be addressed at extraordinary general shareholders meetings called for such purpose. Such other
matters can also be voted in ordinary general shareholders meetings if such items are included on
the agenda.
A universal shareholders meeting, at which 100% of the share capital is present or duly
represented, is considered valid even if no notice of such meeting was given, and, with unanimous
agreement, shareholders may consider any matter at such a meeting.
Convening notice
Notices of all BBVA general shareholders meetings must be published in the Official Gazette
of the Commercial Registry (
Boletín Oficial del Registro Mercantil
) and in a widely circulated
newspaper in Vizcaya, the Spanish province where the registered office of BBVA is located, at least
one month prior to the date of the meeting. The notice must indicate the date of the meeting on the
first convening and all the matters to be considered at the meeting, along with other information
required by the Spanish Corporation Law. The notice may also include the date on which the meeting
should be held on the second convening. At least twenty-four hours should be allowed to elapse
between the first and the second meeting.
10
Place of meeting
General meetings must be held in Bilbao, Spain, where BBVA has its registered office, on the
date indicated in the convening notice.
Right of attendance
The owners of five hundred or more BBVA ordinary shares which are duly registered in the
book-entry record for BBVA ordinary shares at least five days prior to the general shareholders
meeting are entitled to attend. The holders of fewer than five hundred BBVA ordinary shares may
aggregate their shares by proxy to represent at least five hundred BBVA ordinary shares and appoint
a member of the group as their representative at the meeting.
Quorums
Under BBVAs bylaws and the Spanish Corporation Law, general shareholders meetings will be
duly constituted on the first convening if BBVA shareholders holding at least 25% of the share
capital are present or represented by proxy. On the second convening of a general shareholders
meeting, there is no quorum requirement.
Notwithstanding the above, certain special events require a quorum of shareholders, present or
represented by proxy, holding at least 50% of the share capital on first convening of the general
shareholders meeting and no less than 25% of the share capital on the second convening of the
general shareholders meeting. Those special events include: (i) increases or decreases in capital;
(ii) in general, any modification of the bylaws; (iii) issuances of bonds; (iv) limitations of the
preemptive rights to subscribe for new shares; (v) transformations, mergers, spin-offs and
assignments of assets and liabilities; and (iv) the transfer of the registered office abroad. If at
the second convening of the general shareholders meeting the shareholders present or represented
by proxy constitute less than 50% of the share capital, resolutions regarding such matters will be
adopted with the approval of two-thirds of the share capital present or represented by proxy at
such meeting.
BBVAs bylaws also require the presence, in person or represented by proxy, of two-thirds of
the share capital on first convening or 60% of the share capital on the second convening, at
general shareholders meetings in order to adopt resolutions that concern: (i) amendment of the
corporate purpose; (ii) transformation of BBVAs legal status; (iii) a full spin-off; (iv)
dissolution of BBVA; or (v) amendment of the second paragraph of article 25 of BBVAs bylaws, which
establishes this stricter quorum requirement.
Adoption of resolutions
Subject to the higher vote requirements described in the previous paragraphs, the adoption of
resolutions requires a majority vote at the general shareholders meeting.
Validly adopted resolutions are binding on all the shareholders, including those who were
absent, dissented or abstained from voting.
Any resolution adopted at the general shareholders meeting that is contrary to Spanish law
can be contested by any shareholder. Resolutions adopted at the general shareholders meeting that
are contrary to BBVAs bylaws, or that are harmful to BBVAs interests and to the benefit of one or
more shareholders or third parties, can be contested by the shareholders who attend the meeting and
record their opposition to the resolution in the minutes of the meeting, by shareholders who were
absent or by shareholders unlawfully prevented from voting at the meeting.
Under the Spanish Corporation Law, in the event of a vacancy on the BBVA Board of Directors, a
shareholder or group of shareholders that owns an aggregate number of BBVA ordinary shares equal to
or greater than the result of dividing the total capital stock by the number of directors on the
BBVA Board of Directors, has the right to appoint a corresponding proportion of the directors
(rounded downward to the nearest whole number) to the Board of Directors. Shareholders who exercise
this right may not vote on the appointment of other directors to the BBVA Board of Directors.
11
Preemptive Rights
Pursuant to the Spanish Corporation Law, shareholders have preemptive rights to subscribe for
any new BBVA ordinary shares (except where the new BBVA ordinary shares are issued pursuant to the
conversion of convertible bonds, the absorption of another company, or the acquisition of part of
the net assets of another company by means of a spin-off) and for bonds issued which are
convertible into BBVA ordinary shares. These preemptive rights may be abolished in certain
circumstances by shareholder vote in accordance with Article 159 of the Spanish Corporation Law.
Form and Transfer
BBVA ordinary shares are in book-entry form and are indivisible. Joint holders must nominate
one person to exercise their rights as shareholders, though joint holders are jointly and severally
liable for all obligations arising from their status as shareholders. Iberclear, which manages the
clearance and settlement system of the Spanish Stock Exchanges, maintains the central registry of
BBVA ordinary shares reflecting the number of BBVA ordinary shares held by each of its participant
entities (
entidades participantes
) as well as the number of such shares held by beneficial owners.
Each participant entity in turn maintains a register of the owners of such shares.
Transfers of BBVA ordinary shares quoted on the Spanish Stock Exchanges must be made by
book-entry registry or delivery of evidence of title to the buyer, through or with the
participation of a member of the Spanish Stock Exchanges that is an authorized broker or dealer.
Transfers of BBVA ordinary shares may also be subject to certain fees and expenses.
Reporting Requirements
As BBVA ordinary shares are listed on the Spanish Stock Exchanges, the acquisition or
disposition of BBVA ordinary shares must be reported within four business days of the acquisition
or disposition to BBVA, the Comisión Nacional del Mercado de Valores (CNMV), the relevant Spanish
Stock Exchanges and, where the person or group effecting the transaction is a non-Spanish resident,
the Spanish Registry of Foreign Investment, where:
|
|
|
in the case of an acquisition, the acquisition results in that person or group holding
3% (or 5%, 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45%, 50%, 60%, 70%, 75%, 80% or 90%) of
BBVAs share capital; or
|
|
|
|
|
in the case of a disposal, the disposition reduces shares held by a person or group
below a threshold of 3% (or 5%, 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45%, 50%, 60%, 70%, 75%,
80% or 90%) of BBVAs share capital.
|
Each member of the BBVA Board of Directors must report to BBVA, the CNMV and the relevant
Spanish Stock Exchanges, shares and stock options held at the time such director joined the Board
of Directors. Furthermore, each member of the BBVA Board of Directors must similarly report any
acquisition or disposition, regardless of size, of BBVA shares or stock options within five
business days of such acquisition or disposition.
Additional disclosure obligations apply to voting agreements and to purchasers in
jurisdictions designated as tax havens or lacking adequate supervision, where the threshold for
such disclosure obligation is reduced to 1% (or successive multiples of 1%).
Change of Control Provisions
Certain antitrust regulations may also delay, defer or prevent a change of control of BBVA or
any of its subsidiaries in the event of a merger, acquisition or corporate restructuring. In Spain,
the application of both Spanish and European antitrust regulations requires that prior notice of
domestic or crossborder merger transactions be given in order to obtain a non-opposition ruling
from antitrust authorities.
Spanish regulation of takeover bids may also delay, defer or prevent a change of control of
BBVA or any of its subsidiaries in the event of a merger, acquisition or corporate restructuring.
Spanish regulation of takeover bids set forth in Law 6/2007 and Royal Decree 1066/2007 introduces
significant amendments to the Spanish rules governing takeover bids. In particular:
12
|
|
|
a bidder must make a tender offer in respect of 100% of the issued share capital of a
target company if:
|
|
|
|
it acquires an interest in shares which (taken together with shares in which persons
acting in concert with it are interested) carry 30% or more of the voting rights of the
target company;
|
|
|
|
|
it acquires an interest in shares which (taken together with shares in which persons
acting in concert with it are interested) carry less than 30% of the voting rights but
enable the bidder to appoint a majority of the members of the target companys board of
directors;
|
|
|
|
|
it held 30% or more but less than 50% of the voting rights of the target company on
the date the law came into force, and subsequently;
|
|
|
|
acquires, within 12 months, an additional interest in shares which carries 5% or
more of such voting rights;
|
|
|
|
|
acquires an additional interest in shares so that the bidders aggregate
interest carries 50% or more of such voting rights; or
|
|
|
|
|
acquires an additional interest in shares which enables the bidder to appoint a
majority of the members of the target companys board of directors;
|
|
|
|
if a bidders actions do not fall into the categories described above, such acquisition
may qualify as an a priori or partial tender offer (i.e., in respect of less than 100% of
the issued share capital of a target company), in which case such bidder would not be
required to make a tender offer in respect of 100% of the issued share capital of a target
company;
|
|
|
|
|
the board of directors of a target company is exempt from the rule prohibiting certain
board interference with a tender offer (the passivity rule), provided that (i) it has
been authorized by the general shareholders meeting to take action or enter into a
transaction which could disrupt the offer, or (ii) it has been released from the passivity
rule by the general shareholders meeting vis-à-vis bidders whose boards of directors are
not subject to an equivalent passivity rule;
|
|
|
|
|
defensive measures included in a listed companys bylaws and transfer and voting
restrictions included in agreements among a listed companys shareholders will remain in
place whenever the company is the target of a tender offer unless the general shareholders
meeting resolves otherwise (in which case any shareholders whose rights are diluted or
otherwise adversely affected may be entitled to compensation); and
|
|
|
|
|
if, as a result of a tender offer in respect of 100% of the issued share capital of a
target company, the bidder acquires an interest in shares representing at least 90% of the
voting rights of the target company or the offer has been accepted by investors
representing at least 90% of the voting rights of the target company (provided such voting
rights are distinct from those already held by the bidder), the bidder may force the
holders of the remaining share capital of the company to sell their shares. The minority
holders shall also have the right to force the bidder to acquire their shares under these
same circumstances.
|
As further described below in Restrictions on Acquisitions of BBVA Ordinary Shares, since
BBVA is a credit entity, it is necessary to obtain approval from the Bank of Spain in order to
acquire a number of shares considered to be a significant participation by Law 26/1988, of July 29,
1998 as amended by Act 5/2009 of June 29. Also, any agreement that contemplates BBVAs merger with
another credit entity will require the authorization of the Spanish Ministry of Economy and the
Treasury. This could also delay, defer or prevent a change of control of BBVA or any of its
subsidiaries that are credit entities in the event of a merger.
Exchange Controls
In 1991, Spain adopted the EU standards for free movement of capital and services. As a
result, exchange controls and restrictions on foreign investments have generally been abolished and
foreign investors may transfer
13
invested capital, capital gains and dividends out of Spain without limitation as to amount,
subject to applicable taxes.
Pursuant to Spanish Law 18/1992 on Foreign Investments (
Ley 18/1992, de 1 de julio
) and Royal
Decree 664/1999 (
Real Decreto 664/1999, de 23 de abril
), foreign investors may freely invest in
shares of Spanish companies, except in the case of certain strategic industries.
Shares in Spanish companies held by foreign investors must be reported to the Spanish Registry
of Foreign Investments by the depositary bank or relevant Iberclear member. In addition, when a
foreign investor acquires shares in a company that is subject to the reporting requirements of the
CNMV, such foreign investor must also give notice directly to the CNMV and the applicable Spanish
Stock Exchanges if such acquisition results in such foreign investor exceeding certain ownership
thresholds.
Investment by foreigners domiciled in enumerated tax haven jurisdictions is subject to special
reporting requirements under Royal Decree 1080/1991 (
Real Decreto 1080/1991, de 5 de julio
).
Restrictions on Acquisitions of BBVA Ordinary Shares
BBVAs bylaws do not provide any restrictions on the ownership of BBVA ordinary shares.
Because BBVA is a Spanish bank, however, the acquisition or disposition of a significant
participation of BBVA shares is subject to certain restrictions. Such restrictions may impede a
potential acquirers ability to acquire BBVA shares and gain control of BBVA.
Law 26/1988 on discipline and oversight of financial institutions, amended by Act 5/2009,
provides that any individual or corporation, acting alone or in concert with others, intending to
directly or indirectly acquire a significant holding in a Spanish financial institution (as defined
in article 56 of Law 26/1998) or to directly or indirectly increase its holding such that the
percentage of voting rights or of capital owned were equal to or more than any of the thresholds of
20%, 30% or 50% (or by virtue of the acquisition, might take control over the financial
institution) must first notify the Bank of Spain. The Bank of Spain will have 60 working days after
the date on which the notification was received to evaluate the transaction and, where applicable,
challenge the proposed acquisition on the grounds established by law.
A significant participation is considered to be 10% of the outstanding share capital of a bank
or a lower percentage if such holding allows for the exercise of a significant influence.
Any acquisition made without such prior notification, or conducted before 60 working days have
elapsed since the date of such notification, or made in circumstances where the Bank of Spain has
objected, will produce the following results:
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the acquired shares will have no voting rights; and
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if considered appropriate, the target bank may be taken over, its directors replaced and
a sanction imposed.
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The Bank of Spain has 60 working days after the date on which the notification was received to
object to a proposed transaction. Such objection may be based on the fact that the Bank of Spain
does not consider the acquiring person suitable to guarantee the prudent operation of the target
bank.
Any individual or institution that intends to sell its significant participation in a bank or
reduce its participation below the above-mentioned percentages, or which, because of such sale,
loses control of the entity, must give prior notice to the Bank of Spain, indicating the amount to
be sold and the period in which the transaction is to be executed. Non-compliance with this
requirement will result in sanctions.
Spains Ministry of Economy and the Treasury, following a proposal by the Bank of Spain, may,
whenever the control of a bank by a person with a significant participation may jeopardize the
sound and prudent management of such bank, adopt any of the following measures as deemed
appropriate:
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suspend the voting rights corresponding to such shares for up to three years;
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take control of the bank or replace the directors; or
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revoke the banks license.
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Payment of Taxes
Holders of BBVA ordinary shares will be responsible for any taxes or other governmental
charges payable on their BBVA ordinary shares, including any taxes payable on transfer. The paying
agent or the transfer agent, as the case may be, may, and upon instruction from BBVA, will:
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refuse to effect any registration of transfer of such ordinary shares or any split-up or
combination thereof until such payment is made; or
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withhold or deduct from any distributions on such ordinary shares or sell for the
account of the holder thereof any part or all of such ordinary shares (after attempting by
reasonable means to notify such holder prior to such sale), and apply, after deduction for
its reasonable expenses incurred in connection therewith, the net proceeds of any such sale
in payment of such tax or other governmental charge, the holder of such ordinary shares
remaining liable for any deficiency.
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DESCRIPTION OF BBVA AMERICAN DEPOSITARY SHARES
The Bank of New York Mellon executes and delivers the BBVA ADRs evidencing BBA ADSs. Each BBVA
ADS represents an ownership interest in one BBVA ordinary share. The BBVA ordinary shares will be
deposited with BBVA, The Bank of New York Mellons custodian in Spain. Each BBVA ADS will also
represent securities, cash or other property deposited with The Bank of New York Mellon but not
distributed to BBVA ADS holders. The Bank of New York Mellons Corporate Trust Office is located at
101 Barclay Street, New York, NY 10286 and its principal executive office is located at One Wall
Street, New York, NY 10286.
You may hold BBVA ADSs either (A) directly (i) by having an American Depositary Receipt, also
referred to as a BBVA ADR, which is a certificate evidencing a specific number of BBVA ADSs,
registered in your name, or (ii) by having BBVA ADSs registered in your name in the Direct
Registration System, or (B) indirectly by holding a security entitlement in BBVA ADSs through your
broker or other financial institution. If you hold BBVA ADSs directly, you are an ADS registered
holder. This description assumes you are an ADS registered holder. If you hold the BBVA ADSs
indirectly, you must rely on the procedures of your broker or other financial institution to assert
the rights of BBVA ADS registered holders described in this section. You should consult with your
broker or financial institution to find out what those procedures are.
The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the
depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by
periodic statements sent by the depositary to the registered holders of uncertificated ADSs.
BBVA ADS holders are not BBVA shareholders and do not have shareholder rights. Because The
Bank of New York Mellon will actually hold the BBVA ordinary shares, you must rely on it to
exercise the rights of a shareholder. The obligations of The Bank of New York Mellon are set out in
a deposit agreement among BBVA, The Bank of New York Mellon, as depositary, and BBVA ADS holders,
as amended, referred to as the deposit agreement. The deposit agreement and the BBVA ADSs are
generally governed by New York law.
The following is a summary of the deposit agreement. Because it is a summary, it does not
contain all the information that may be important to you. For more complete information, you should
read the entire agreement and the BBVA ADR. Copies of the deposit agreement and the form of BBVA
ADR are available for inspection at the Corporate Trust Office of The Bank of New York Mellon at
the address set forth above.
Deposit and Withdrawal of Deposited Securities
The depositary has agreed that upon the execution in favor of the depositary or its nominee
and delivery to the custodian or depositary (if to the depositary, then at the expense and risk of
the depositor) of either (i) a certificate of title which has been executed by a Spanish
stockbroker and, if required, certificates representing such shares to the custodian together with
any documents and payments required under the deposit agreement or (ii) any other evidence of
ownership of shares as recognized under the laws of Spain from time to time, and acceptable to the
custodian, the depositary will have for delivery at the depositarys corporate trust office to or
upon the order of the person specified by the depositor at the address set forth above, upon
payment of the fees, charges and taxes provided in the deposit agreement, registered in the name of
such person or persons as specified by the depositor, the number of BBVA ADSs issuable in respect
of such deposit.
Upon surrender of BBVA ADSs at the depositarys corporate trust office, together with written
instructions from the person or persons in whose name the BBVA ADSs are registered, and upon
payment of such charges as are provided in the deposit agreement and subject to its terms, the
depositary will request the execution of evidence of ownership in favor of such persons designated
in the written instrument and the delivery of such evidence of ownership (by book-entry transfer or
physical delivery) of the deposited shares represented by the surrendered BBVA ADSs and any other
property that the surrendered BBVA ADRs represent the right to receive. Such delivery is to take
place at the office of the custodian or at the depositarys office as the person designated in the
written instructions may request.
If a person presents for deposit shares with different distribution rights than other
deposited shares, the depositary must identify them separately until such time as the distribution
rights are the same.
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Pre-Release of BBVA ADSs
In certain circumstances, subject to the provisions of the deposit agreement, and with BBVAs
written consent, The Bank of New York Mellon may execute and deliver BBVA ADSs before the deposit
of the underlying shares. This is called a pre-release of the BBVA ADS. The Bank of New York Mellon
may receive BBVA ADSs instead of shares to close out a pre-release.
Each pre-release will be:
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fully collateralized with cash, U.S. government securities or other collateral that The
Bank of New York Mellon determines in good faith will provide substantially similar
liquidity and security;
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preceded or accompanied by written representation and agreement from the person to whom
BBVA ADSs are to be delivered that the person, or its customer:
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owns the shares to be remitted;
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assigns all beneficial rights, title and interest in such shares to the depositary
in its capacity as such, and for the benefit of the holders; and
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will not take any action with respect to such shares that is inconsistent with the
transfer of beneficial ownership (including, without the consent of the depositary,
disposing of such shares, other than in satisfaction of such pre-release).
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terminable by the depositary on not more than five business days notice; and
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subject to such further indemnities and credit regulations that The Bank of New York
Mellon considers appropriate.
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The Bank of New York Mellon must be able to close out the pre-release on not more than five
business days notice. In addition, The Bank of New York Mellon will limit the number of BBVA ADSs
that may be outstanding at any time as a result of pre-release, although The Bank of New York
Mellon may disregard the limit from time to time, if it thinks it is appropriate to do so. The Bank
of New York Mellon may also, as it deems appropriate, set U.S. dollar limits with respect to a
given pre-release on a case by case basis.
The pre-release will be subject to such indemnities and credit regulations as The Bank of New
York Mellon considers appropriate.
Dividends, Other Distributions and Rights
The depositary has agreed to pay to holders of BBVA ADSs the cash dividends or other
distributions it or the custodian receives on shares or other deposited securities after deducting
its fees and expenses and according to applicable law. Holders of BBVA ADSs will receive these
distributions in proportion to the number of shares their BBVA ADSs represent.
Cash
. The Bank of New York Mellon will convert all cash dividends and other cash distributions
in a foreign currency that it receives in respect of the deposited securities into U.S. dollars if
in its judgment it can do so on a reasonable basis and can transfer the U.S. dollars to the United
States.
Before making a distribution, any withholding taxes that must be paid will be deducted. The
Bank of New York Mellon will distribute only whole U.S. dollars and cents. If the exchange rates
fluctuate during a time when The Bank of New York Mellon cannot convert euros, holders of BBVA ADSs
may lose some or all of the value of the distribution.
BBVA Ordinary Shares
. If a distribution by BBVA consists of a dividend in, or free
distribution of, BBVA ordinary shares, The Bank of New York Mellon may, or if BBVA requests, will,
subject to the deposit agreement, distribute to the holders of outstanding BBVA ADSs, in proportion
to their holdings, additional BBVA ADSs
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representing the number of BBVA ordinary shares received as such dividend or free distribution
if BBVA furnishes it with evidence that it is legal to do so. The Bank of New York Mellon will only
distribute whole BBVA ADSs. It will sell BBVA ordinary shares which would require it to use
fractional BBVA ADSs and distribute the net proceeds in the same way as it does with cash. If
additional BBVA ADSs are not so distributed, each BBVA ADS will represent the additional BBVA
ordinary shares distributed in respect of the BBVA ordinary shares represented by such BBVA ADS
prior to such dividend or free distribution.
Rights
. If BBVA offers or causes to be offered to the holders of shares any rights to
subscribe for additional shares or any rights of any other nature, The Bank of New York Mellon will
either:
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make such rights available to holders of BBVA ADSs by means of warrants or otherwise, if
The Bank of New York Mellon determines that it is lawful and feasible to do so; or
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if making such rights available is determined by The Bank of New York Mellon not to be
lawful and feasible, or if the rights represented by such warrants or other instruments are
not exercised and appear to be about to lapse, sell such rights or warrants or other
instruments:
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on a stock exchange on which such rights are listed;
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on an over-the-counter market on which such rights are traded; or
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with the written approval of BBVA, at a private sale,
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at such place or places and upon such terms as The Bank of New York Mellon may deem proper, and
allocate the proceeds of such sales for the account of the holders of the BBVA ADSs entitled to
those proceeds, upon an averaged or other practicable basis without regard to any distinctions
among such holders of BBVA ADSs due to exchange restrictions, or the date of delivery of any ADSs
or otherwise.
The net proceeds allocated to the holders of BBVA ADSs so entitled will be distributed to the
extent practicable in the case of a distribution in cash. The Bank of New York Mellon will not
offer such rights to holders of BBVA ADSs having an address in the United States unless BBVA
furnishes to The Bank of New York Mellon (i) evidence that a registration statement under the
Securities Act of 1933, as amended (the Securities Act) is in effect or (ii) an opinion from U.S.
counsel for BBVA, in a form satisfactory to The Bank of New York Mellon, to the effect that such
distribution does not require registration under the provisions of the Securities Act.
BBVA ordinary shares issuable upon exercise of preemptive rights must be registered under the
Securities Act in order to be offered to holders of BBVA ADSs. If BBVA decided not to register
those BBVA ordinary shares, the preemptive rights would not be distributed to holders of BBVA ADSs.
Pursuant to the deposit agreement under which the BBVA ADSs are issued, however, the depositary
will use its best efforts to sell such rights that it receives and will distribute the proceeds of
the sale to holders of BBVA ADSs.
Other Distributions
. The Bank of New York Mellon will remit to holders of BBVA ADSs any other
item of value BBVA distributes on deposited securities by any means it thinks is legal, fair and
practical. If it cannot make the distribution in that way, The Bank of New York Mellon may adopt
such method as it may deem equitable and practicable for the purpose of effecting such
distribution. The Bank of New York Mellon may sell, publicly or privately, what BBVA distributed
and distribute the net proceeds in the same way as it does with cash.
The Bank of New York Mellon is not responsible if it decides that it is unlawful or
impractical to make a distribution available to any BBVA ADS holders. BBVA has no obligations to
register BBVA ADSs, BBVA ordinary shares, rights or other securities under the Securities Act. BBVA
also has no obligation to take any other action to permit the distribution of BBVA ADSs, BBVA
ordinary shares, rights or anything else to BBVA ADS holders. This means that holders of BBVA ADSs
may not receive the distribution BBVA makes on its shares or any value for them if it is illegal or
impractical for BBVA to make them available to them.
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Payment of Taxes
Holders of BBVA ADSs will be responsible for any taxes or other governmental charges payable
on their BBVA ADSs or on the deposited securities underlying their BBVA ADSs, including any taxes
payable on transfer. The Bank of New York Mellon may, and upon instruction from BBVA, will:
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refuse to effect any registration of transfer of such receipt or any split-up or
combination thereof or any withdrawal of such deposited securities until such payment is
made; or
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withhold or deduct from any distributions on such deposited securities or sell for the
account of the holder thereof any part or all of such deposited securities (after
attempting by reasonable means to notify such holder prior to such sale), and apply, after
deduction for its expenses incurred in connection therewith, the net proceeds of any such
sale in payment of such tax or other governmental charge, the holder of such receipt
remaining liable for any deficiency.
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Record Dates
The Bank of New York Mellon will fix a record date to establish which holders of BBVA ADSs are
entitled to:
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receive a dividend, distributions or rights;
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net proceeds of any sale;
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give instructions for the exercise of voting rights at any such meeting; and
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receive notice or solicitation to act in respect of any matter.
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Voting of the Underlying Deposited Securities
BBVA has agreed in the depositary agreement that (i) the depositary or its nominee, whichever
is the registered holder of the BBVA ordinary shares represented by the BBVA ADSs, will have the
same rights as any other registered holder of BBVA ordinary shares and (ii) consistent with BBVAs
bylaws, BBVA will observe the right of the depositary, its nominee or registered holder of the BBVA
ordinary shares to attend any ordinary or extraordinary general shareholders meeting and to vote
or cause to be voted by proxy the BBVA ordinary shares with respect to the BBVA ADSs and that BBVA
will not exercise any right it may have under its bylaws to reject or in any way impair such
rights.
Once The Bank of New York Mellon receives notice in English of any matter affecting holders of
BBVA ordinary shares, it will mail, as soon as practicable, such notice to the holders of BBVA
ADSs. The notice will (i) contain the information in the notice of meeting, (ii) explain how
holders as of a certain date may instruct The Bank of New York Mellon to vote the shares underlying
their BBVA ADSs and (iii) contain a statement as to the manner in which instructions may be given.
The record holders of BBVA ADSs can instruct The Bank of New York Mellon to vote the shares
underlying their BBVA ADSs. The Bank of New York Mellon will try, insofar as practicable, to cause
the BBVA ordinary shares so represented to be voted in accordance with any nondiscretionary written
instructions of BBVA ADS record holders received.
In the event the BBVA ADS record holders do not provide written instructions by a specified
date, The Bank of New York Mellon will deem the BBVA ADR holder to have instructed it to give
discretionary proxy to a person designated by the BBVA Board of Directors. However, this proxy must
not be given to such a person if the board informs The Bank of New York Mellon, in writing, that
the board either does not wish the proxy to be given, that substantial opposition exists or that
the matter at hand materially affects the rights of BBVA shareholders.
Facilities and Register
The Bank of New York Mellon will maintain at its transfer office:
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facilities for the delivery and surrender of BBVA ordinary shares;
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facilities for the withdrawal of BBVA ordinary shares;
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facilities for the execution and delivery, registration, registration of transfer,
combination and split-up of BBVA ADSs and the withdrawal of deposited securities; and
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a register for the registration and transfer of BBVA ADSs which, at all reasonable
times, shall be open for inspection by holders of BBVA ADSs.
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Reports and Notices
The Bank of New York Mellon will, at BBVAs expense:
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arrange for the custodian to provide The Bank of New York Mellon copies in English of
any reports and other communications that are generally made available by BBVA to holders
of BBVA ordinary shares; and
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arrange for the mailing of such copies to all holders of BBVA ADSs.
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BBVA has delivered to The Bank of New York Mellon and the custodian a copy of the provisions
of or governing the BBVA ordinary shares BBVA issued. Promptly after any amendment, BBVA will
deliver to The Bank of New York Mellon and the custodian a copy in English of such amended
provisions. The Bank of New York Mellon may rely upon such copy for all the purposes of the deposit
agreement.
The Bank of New York Mellon will, at BBVAs expense, make available for inspection by BBVA ADS
holders at the Corporate Trust Office, the office of the custodian and at any other designated
transfer office any reports and communications received from BBVA that are made generally available
to holders of BBVA ordinary shares.
Amendment and Termination of the Deposit Agreement
The BBVA ADSs and the deposit agreement may at any time be amended by agreement between BBVA
and The Bank of New York Mellon.
Any amendment that would impose or increase any charges (other than transmission and delivery
charges incurred at the request of depositors of BBVA ordinary shares or holders of BBVA ADSs,
transfer, brokerage, registration fees and charges in connection with conversion of currencies, and
taxes and other governmental charges) or that will otherwise prejudice any substantial existing
right of BBVA ADS holders will not become effective as to outstanding BBVA ADRs until three months
have expired after notice of such amendment has been given to the holders of the BBVA ADRs.
In no event will any amendment impair the right of any BBVA ADS holder to surrender such BBVA
ADSs and receive in return the BBVA ordinary shares and other property which those surrendered BBVA
ADSs represent, except in order to comply with mandatory provisions of applicable law.
At BBVAs direction, The Bank of New York Mellon will terminate the deposit agreement by
giving notice of such termination to the record holders of BBVA ADSs at least 30 days prior to the
date fixed in that notice for the termination. The Bank of New York Mellon may terminate the
deposit agreement at any time commencing 90 days after delivery of a written resignation, provided
that no successor depositary has been appointed and no successor depositary has accepted its
appointment before the end of those 90 days.
After the date that has been fixed for termination, The Bank of New York Mellon and its agents
will perform no further acts under the deposit agreement, other than:
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advise record holders of BBVA ADSs of such termination;
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receive and hold distributions on BBVA ordinary shares; and
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deliver BBVA ordinary shares and distributions in exchange for BBVA ADSs surrendered to
The Bank of New York Mellon.
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As soon as practicable after the expiration of six months from the date that has been fixed
for termination, The Bank of New York Mellon will sell BBVA ordinary shares and other deposited
securities and may hold the net proceeds of any such sale together with any other cash then held by
it under the provisions of the deposit agreement, without liability for interest, for the
pro rata
benefit of the holders of BBVA ADRs that have not yet surrendered their BBVA ADRs.
Fees and Expenses
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BBVA ADS Holders Must Pay:
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For:
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$5.00 (or less) per 100 BBVA ADSs
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Each issuance of BBVA ADS;
each cancellation of BBVA
ADS.
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Registration or transfer fees
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Transfer and registration
of shares register of the
foreign registrar from
holders name to the name
of The Bank of New York
Mellon or its agents when
a holder deposits or
withdraws BBVA ordinary
shares.
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Expenses of The Bank of New York Mellon
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Conversion of foreign
currency to U.S. dollars,
if any; Cable, telex, and
facsimile transmission
expenses.
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Stock transfer or other taxes (including
Spanish income taxes) and other governmental
charges The Bank of New York Mellon or the
custodian have to pay on any BBVA ADS or
share underlying a BBVA ADS
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As necessary.
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The Bank of New York Mellon, as depositary, has agreed to reimburse BBVA for expenses it
incurs that are related to establishment and maintenance of the BBVA ADS program, including
investor relations expenses and stock market application and listing fees. There are limits on the
amount of expenses for which the depositary will reimburse BBVA, but the amount of reimbursement
available to BBVA is not related to the amount of fees the depositary collects from investors.
The depositary collects its fees for delivery and surrender of BBVA ADSs directly from
investors depositing shares or surrendering ADSs for the purpose of withdrawal or from
intermediaries acting for them. The depositary may generally refuse to provide fee-attracting
services until its fees for those services are paid.
Limitations on Obligations and Liability to BBVA ADS Holders
The deposit agreement expressly limits BBVAs obligations and the obligations of The Bank of
New York Mellon, and it limits BBVAs liability and the liability of The Bank of New York Mellon.
BBVA and The Bank of New York Mellon:
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are only obligated to take the actions specifically set forth in the deposit agreement
without negligence or bad faith;
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are not liable for any action or inaction if either relies upon the advice of, or
information from, legal counsel, accountants, any person presenting shares for deposit, any
holder, or any other person believed to be competent to give such advice or information;
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are not liable if either is prevented or delayed by law or circumstances beyond their
control from performing their obligations under the deposit agreement;
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are not liable if either exercises discretion permitted under the deposit agreement;
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have no obligation to become involved in a lawsuit or other proceeding related to the
BBVA ADSs or the deposit agreement on behalf of holders of BBVA ADSs or on behalf of any
other party; and
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may rely upon any documents they believe to be genuine and to have been signed or
presented by the proper party.
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The Bank of New York Mellon will not be liable for its failure to carry out any instructions
to vote BBVAs securities or for the effects of any such vote.
Other General Limitations on Liability to BBVA ADS Holders
Neither The Bank of New York Mellon, its agents, nor BBVA will incur any liability if
prevented or delayed in performing its obligations under the deposit agreement by reason of:
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any present or future law;
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any act of God;
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a war;
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the threat of any civil or criminal penalty; or
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any other circumstances beyond its or BBVAs control.
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The obligations and liabilities of BBVA and its agents and The Bank of New York Mellon and its
agents under the deposit agreement are expressly limited to performing their respective obligations
specifically set forth and undertaken by them to perform in the deposit agreement without
negligence or bad faith.
In the deposit agreement, BBVA and The Bank of New York Mellon agree to indemnify each other
under certain circumstances.
General
The Bank of New York Mellon will act as registrar of the BBVA ADSs or, upon BBVAs request or
approval, appoint a registrar or one or more co-registrars for registration of the BBVA ADRs
evidencing the BBVA ADSs in accordance with the requirements of NYSE or of any other stock exchange
on which the BBVA ADSs may be listed. Such registrars or co-registrars may be removed and a
substitute or substitutes appointed by The Bank of New York Mellon upon BBVAs request or with
BBVAs approval.
Any transfer of the BBVA ADSs is registrable on the books of The Bank of New York Mellon.
However, The Bank of New York Mellon may close the transfer books at any time or from time to time
when it deems expedient in connection with the performance of its duties or at BBVAs request.
As a condition precedent to the execution and delivery, registration of transfer, split-up or
combination of any BBVA ADS or the delivery of any distribution or the withdrawal of any BBVA
ordinary shares or any property represented by the BBVA ADS, The Bank of New York Mellon or the
custodian may, and upon BBVAs instructions will, require from the BBVA ADR holder or the presenter
of the BBVA ADS or the depositor of the BBVA ordinary shares:
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payment of a sum sufficient to pay or reimburse the custodian, The Bank of New York
Mellon or BBVA for any tax or other governmental charge and any stock transfer or brokerage
fee or any charges of the depositary upon delivery of the BBVA ADS or upon surrender of the
BBVA ADS, as set out in the deposit agreement, and,
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the production of proof satisfactory to The Bank of New York Mellon or custodian of:
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identity or genuineness of any signature;
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proof of citizenship, residence, exchange control approval, and legal or beneficial
ownership;
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compliance with all applicable laws and regulations including the delivery of any forms
required by Spanish law or custom in connection with the execution or delivery of evidence
of ownership, with all applicable provisions of or governing the shares or any other
deposited securities and with the terms of the deposit agreement; or
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other information as The Bank of New York Mellon may deem necessary or proper or as BBVA
may require by written request to The Bank of New York Mellon or the custodian.
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The delivery, registration of transfer, split-up or combination of BBVA ADSs, or the deposit
or withdrawal of shares or other property represented by BBVA ADSs, in any particular instance or
generally, may be suspended during any period when the BBVA ADSs register is closed, or when such
action is deemed necessary or advisable by The Bank of New York Mellon or BBVA at any time or from
time to time.
Holders have the right to cancel their BBVA ADSs and withdraw the underlying shares at any
time except:
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when temporary delays arise because The Bank of New York Mellon or BBVA has closed its
transfer books or the deposit of shares in connection with voting at a shareholders
meeting or the payment of dividends;
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when BBVA ADS holders owe money to pay fees, taxes and similar charges; or
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when it is necessary to prohibit withdrawals in order to comply with any laws or
governmental regulations that apply to BBVA ADSs or to the withdrawal of shares or other
deposited securities.
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This right of withdrawal may not be limited by any other provision of the deposit agreement.
The Bank of New York Mellon, upon BBVAs request or with BBVAs approval, may appoint one or
more co-transfer agents for the purpose of effecting registrations of transfers, combinations and
split-ups of BBVA ADSs at designated transfer offices on behalf of The Bank of New York Mellon. In
carrying out its functions, a co-transfer agent may require evidence of authority and compliance
with applicable laws and other requirements by holders of BBVA ADSs and will be entitled to
protection and indemnity to the same extent as The Bank of New York Mellon.
Direct Registration System
In the deposit agreement, all parties to the deposit agreement acknowledge that the DRS and
Profile Modification System (Profile), will apply to uncertificated BBVA ADSs upon acceptance
thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the depositary may
register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic
statements sent by the depositary to the registered holders of uncertificated ADSs. Profile is a
required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered
holder of uncertificated ADSs, to direct the depositary to register a transfer of those ADSs to DTC
or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt
by the depositary of prior authorization from the ADS registered holder to register that transfer.
In connection with the arrangements and procedures relating to DRS and Profile, the parties to
the deposit agreement understand that the depositary will not verify, determine or otherwise
ascertain that the DTC participant that is claiming to be acting on behalf of a BBVA ADS registered
holder in requesting registration of transfer and delivery described in the paragraph above has the
actual authority to act on behalf of the ADS registered holder (notwithstanding any requirements
under the Uniform Commercial Code). In the deposit agreement, the parties agree that the
depositarys reliance on and compliance with instructions received by the depositary through DRS
and Profile and in accordance with the deposit agreement, will not constitute negligence or bad
faith on the part of the depositary.
BBVA ADSs Outstanding
As of March 31, 2010, there were 114,187,399 BBVA ADSs outstanding.
23
DESCRIPTION OF RIGHTS TO SUBSCRIBE FOR ORDINARY SHARES
We may issue rights to subscribe for our ordinary shares (including in the form of ADSs). The
applicable prospectus supplement will describe the specific terms relating to such subscription
rights and the terms of the offering, as well as a discussion of material U.S. federal and Spanish
income tax considerations applicable to holders of the rights to subscribe for our ordinary shares
(including in the form of ADSs).
24
PREFERRED SECURITIES
This section describes the general terms that will apply to any preferred securities that may
be offered pursuant to this prospectus by BBVA International Preferred. The specific terms of the
offered preferred securities, and the extent to which the general terms described in this section
apply to preferred securities, will be described in one or more related prospectus supplements at
the time of the offer.
General
BBVA International Preferred may issue preferred securities from time to time in one or more
series. The preferred securities may be denominated and payable in U.S. dollars or other
currencies. BBVA International Preferred may also issue preferred securities from time to time with
the principal amount or distributions payable on any relevant payment date to be determined by
reference to one or more currency exchange rates, market interest rates, securities or baskets of
securities, commodity prices or indices. Holders of these types of preferred securities will
receive payments of liquidation preference or distributions that depend upon the value of the
applicable currency, interest rate, security or basket of securities, commodity or index on the
relevant payment dates or otherwise as specified in the applicable prospectus supplement.
Terms Specified in the Applicable Prospectus Supplement
The applicable prospectus supplement will contain, where applicable, the following terms of
and other information relating to any offered preferred securities:
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the status and ranking of the preferred securities in the event of any liquidation,
dissolution or winding up of BBVA International Preferred;
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the specific designation of the preferred securities;
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the public offering price of the preferred securities;
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the number and liquidation preference of the preferred securities;
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the rate or rates at which BBVA International Preferred will pay distributions (which
may also be referred to as capital payments), or method of calculation of such rate or
rates, the payment date or dates for any distributions, the record date for any
distributions and any limitations on distributions;
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the amount or amounts that BBVA International Preferred will pay out of its assets to
the holders of the preferred securities upon the companys liquidation;
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the obligation or option, if any, of BBVA International Preferred to purchase or redeem
the preferred securities and the price or prices (or formula for determining the price) at
which, the period or periods within which, and the terms and conditions upon which, BBVA
International Preferred will or may purchase or redeem the preferred securities, in whole
or in part, pursuant to the obligation or option;
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the voting rights, if any, of the preferred securities, including any vote required to
amend BBVAs International Preferreds charter and the constitution of any syndicate of
holders of preferred securities;
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the criteria for determining whether and to what extent BBVA International Preferred
will be authorized or required to pay distributions on the preferred securities;
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terms for any optional or mandatory conversion or exchange of preferred securities into
other securities;
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whether and under what circumstances BBVA International Preferred will be required to
pay any additional amounts on the preferred securities in the event of certain developments
with respect to withholding tax or information reporting laws;
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additional information regarding beneficial owners of the preferred securities and the
withholding tax consequences related to any failure to provide such information;
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any restrictions applicable to the sale and delivery of the preferred securities;
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any other relative rights, preferences, privileges, limitations or restrictions of the
preferred securities not inconsistent with applicable law; and
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a discussion of material U.S. federal and Spanish income tax considerations applicable
to holders of preferred securities.
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The applicable prospectus supplement may also include, if applicable, a discussion of certain
ERISA considerations.
Form
Unless otherwise provided in the applicable prospectus supplement, the preferred securities
will be issued in registered form.
Guarantee
The applicable prospectus supplement will contain a summary of the terms of the relevant
preferred securities guarantee.
Governing Law
Unless otherwise provided in the applicable prospectus supplement, the preferred securities
and any preferred securities guarantees will be governed by Spanish law.
26
DESCRIPTION OF THE NOTES AND THE NOTES GUARANTEES
This section describes the general terms and provisions of the indenture dated June 28, 2010
(the senior indenture) among BBVA U.S. Senior as issuer, BBVA as guarantor and The Bank of New
York Mellon as trustee, which sets forth certain provisions with respect to the senior notes and
the senior guarantees that may be offered by BBVA U.S. Senior and BBVA, respectively, and the
indenture dated June 28, 2010 (the subordinated indenture) among BBVA Subordinated Capital as
issuer, BBVA as guarantor and The Bank of New York Mellon as trustee, which sets forth certain
provisions with respect to the subordinated notes and the subordinated guarantees that may be
offered by BBVA Subordinated Capital and BBVA, respectively. In this section, we will refer to BBVA
U.S. Senior and BBVA Subordinated Capital as the issuers, the senior notes and the subordinated
notes as the notes, the senior indenture and the subordinated indenture as the indentures and
the senior guarantees and the subordinated guarantees as the notes guarantees. A prospectus
supplement of the relevant issuer will describe the specific terms of a particular series of notes
and any general terms outlined in this section that will not apply to those notes. If there is any
conflict between the prospectus supplement and this prospectus, then the terms and provisions in
the prospectus supplement apply unless they are inconsistent with the terms of the indentures or
the supplemental indenture or Board resolution creating a particular series of notes.
All material information about the notes, notes guarantees and indentures is summarized below
and in the applicable prospectus supplement. Because this is only a summary, however, it does not
contain all the details found in the full text of the indentures, the notes and the notes
guarantees. If you would like additional information, you should read the indentures, the notes and
the notes guarantees. Whenever we refer to specific provisions of or terms defined in the
indentures in this prospectus we incorporate by reference into this prospectus such specific
provisions of or terms defined in the indentures.
BBVA U.S. Senior or BBVA Subordinated Capital may issue future notes and BBVA may issue future
guarantees of such notes under other indentures or documentation which contain provisions different
from those included in the indentures described here. None of the issuers or BBVA are prohibited
under the notes, indentures or notes guarantees, as the case may be, from paying any amounts due
under any of their respective obligations at a time when they are in default or have failed to pay
any amounts due under the notes, indentures or notes guarantees, as the case may be. See
Subordinated Notes and Subordinated Guarantees.
The senior notes will be issued under the senior indenture and the subordinated notes will be
issued under the subordinated indenture. Both such indentures have been filed with the SEC as
exhibits to the registration statement that includes this prospectus.
General
The indentures do not limit the aggregate principal amount of notes that BBVA U.S. Senior or
BBVA Subordinated Capital may issue under them. However, on May 25, 2010, the Guarantors Board of
Directors resolved to provide an irrevocable guarantee up to an aggregate amount of 6,000,000,000
(or its equivalent in any other currency) for future issues of notes made by the issuers, and as of
the date of this prospectus the Guarantor has not issued any guarantees under this authorization.
The Guarantors Board of Directors may at any time increase or decrease the aggregate amount for
such guarantees authorized for future issuances.
Neither the indentures, nor the notes, nor the notes guarantees will limit or otherwise
restrict the amount of other indebtedness or other securities or guarantees which the issuers, the
Guarantor or any of its subsidiaries may incur or issue. The notes will not contain any provision
that would provide you, as a holder of the notes, with protection against a sudden and significant
decline in the credit quality of BBVA U.S. Senior, BBVA Subordinated Capital or the Guarantor, or
against a takeover, recapitalization or highly leveraged similar transaction involving the
Guarantor. BBVA U.S. Senior or BBVA Subordinated Capital can issue notes from time to time in one
or more series, up to the aggregate principal amount that BBVA U.S. Senior, BBVA Subordinated
Capital and the Guarantor may authorize. The notes will be direct, unconditional and unsecured debt
obligations of BBVA U.S. Senior or BBVA Subordinated Capital, as the case may be. The notes
guarantees will be direct, unconditional and unsecured obligations of the Guarantor.
27
The indentures provide that there may be more than one trustee under such indentures, each
with respect to one or more series of notes. Any trustee may resign or be removed with respect to
any series of notes issued under the indentures and a successor trustee may be appointed.
The issuers, the Guarantor or any of their respective subsidiaries may at any time purchase
senior notes or subordinated notes at any price in the open market or otherwise. Such notes
purchased may be held, reissued, resold or surrendered to the relevant paying agent and/or the
relevant registrar for cancellation, except that senior notes purchased by BBVA U.S. Senior and
subordinated notes purchased by BBVA Subordinated Capital must be surrendered to the relevant
paying agent and/or the relevant registrar for cancellation in accordance with prevailing Spanish
Law and the Bank of Spains requirements.
General Terms of the Notes and the Notes Guarantees
The applicable prospectus supplement will describe the terms of the offered notes and notes
guarantees, including some or all of the following:
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the title of the notes and series in which these notes will be included;
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any limit on the aggregate principal amount of the notes and notes guarantees;
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the price or prices (expressed as a percentage of the aggregate principal amount) at
which the notes will be issued;
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if any of the notes are to be issuable in global form, then when they are to be issuable
in global form and (i) whether beneficial owners of interests in the notes may exchange
such interests for notes of the same series and of like tenor and of any authorized form
and denomination, and the circumstances under which any such exchanges may occur; (ii) the
name of the depository with respect to any global note; and (iii) the form of any legend or
legends that must be borne by any such note in addition to or in lieu of that set forth in
the relevant indenture;
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the date or dates on which the principal of the offered notes is payable, or the method,
if any, by which such date or dates will be determined and, if other than the full
principal amount, the portion payable or the method by which the portion of the principal
amount of the notes payable on that date is determined;
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the rate or rates (which may be fixed or variable) at which the offered notes will bear
interest, if any, or the method by which such rate or rates will be determined and the
manner upon which interest will be calculated if other than on the basis of a 360-day year
of twelve 30-day months;
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the date or dates from which interest on the notes, if any, will accrue or the method,
if any, by which such date or dates will be determined;
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the date or dates on which such interest, if any, will be payable, the date or dates on
which payment of such interest, if any, will commence and the regular record dates for the
interest payment dates, if any;
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whether and under what circumstances additional amounts on the notes must be payable;
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the notice, if any, to holders of the notes regarding the determination of interest on a
floating rate note and the manner of giving such notice;
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the date or dates on or after which, or the period or periods, if any, during which and
the price or prices at which the issuer of the notes will, pursuant to any mandatory
sinking fund provisions, or may, pursuant to any optional sinking fund or any purchase fund
provisions, redeem the notes, and the other terms and provisions of such funds;
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the date or dates on or after which, or the period or periods, if any, during which and
the price or prices at which the issuer or the holders of the notes may, pursuant to any
optional redemption provisions in addition
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to those set forth in the prospectus, redeem the notes, and the other terms and provisions
of such optional redemption;
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if certificates representing the notes will be issued in temporary or permanent global
form, the identity of the depository for the global notes, and the manner in which any
principal, premium, if any, or interest payable on those global notes will be paid if other
than as provided in the indentures;
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each office or agency where, subject to the terms of the indenture, the principal,
premium and interest, if any, and additional amounts, if any, on the notes will be payable,
where the notes may be presented for registration of transfer or exchange and where notices
or demands to the issuer in respect of the notes or the indenture may be served;
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whether any of the notes are to be redeemable at the option of the issuer of the notes
or of the holder thereof and, if so, the period or periods within which, the price or
prices at which and the other terms and conditions upon which such notes may be redeemed,
in whole or in part, at the option of the issuer or holder and the terms and provisions of
such optional redemption;
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whether the issuer is obligated to redeem or purchase any of the notes pursuant to any
sinking fund or analogous provision or at the option of any holder thereof and, if so, the
period or periods within which, the price or prices at which and the other terms and
conditions upon which such notes must be redeemed or purchased, in whole or in part, and
any provisions for the remarketing of such notes;
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the denomination and currency in which the notes will be issuable;
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whether any of the notes will be issued as original issue discount notes;
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if other than the principal amount thereof, the portion of the principal amount of any
such notes that shall be payable upon declaration of acceleration of maturity thereof or
the method by which such portion is to be determined;
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if other than U.S. dollars, the currencies or currency units in which the principal,
premium, if any, interest, if any, and additional amounts, if any, for the notes will be
payable and the manner of determining the equivalent of such currencies in U.S. dollars;
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whether the notes and notes guarantees are senior notes and senior guarantees issued
pursuant to the senior indenture or subordinated notes and subordinated guarantees issued
pursuant to the subordinated indenture or include both;
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whether BBVA U.S. Senior, BBVA Subordinated Capital or a holder may elect payment of the
principal, premium, and interest or additional amounts, if any, on the notes in a currency
or currencies, currency unit or units or composite currency different from the one in which
the notes are denominated or stated to be payable, and the period or periods and terms and
conditions on which the election may be made, as well as the time and manner of determining
the exchange rate;
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whether the amount of payments of principal of, premium and interest, if any, on or any
additional amounts on the notes may be determined with reference to an index, formula or
other method which may, but need not be, based on one or more currencies, currency units or
composite currencies, commodities, equity or other indices, and the terms and conditions
upon which and the manner in which these amounts will be determined;
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whether the person in whose name a note is registered at the close of business on the
regular record date for payment of interest will be entitled to designate another person as
the recipient of the interest payment;
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any deletions, modifications or additions to the events of default or covenants of BBVA
U.S. Senior, BBVA Subordinated Capital or the Guarantor with respect to the notes set forth
in the relevant indenture;
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the applicability of the defeasance provisions of the indenture applicable to such notes
and any provisions in modification of, in addition to or in lieu of any of the defeasance
provisions of the relevant indenture;
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if any notes are to be issuable upon the exercise of warrants, the time, manner and
place for such notes to be authenticated and delivered;
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if any of the notes are to be issuable in global form and are to be issuable in
definitive form (whether upon original issue or upon exchange of a temporary note) only
upon receipt of certain certificates or other documents or satisfaction of other
conditions, then the form and terms of such certificates, documents or conditions;
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if other than the applicable trustee, the identity of each security registrar, paying
agent and authenticating agent;
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the Stated Intervals and the Record Date for purposes of Sections 312(a) (in the
case of non-interest bearing notes) and 316(c), respectively, of the Trust Indenture Act of
1939, as amended (the Trust Indenture Act);
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any material U.S. federal or Spanish income tax considerations applicable to the notes
and related notes guarantees;
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any other terms of the notes, which shall not be inconsistent with the provisions of the
indentures;
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the deed of issuance, in Spanish, related to the notes, and the Regulations (as defined
below in Syndicate of Holders, Meetings, Modifications and Waivers), in Spanish with a
non-official English translation, related to the notes; and
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in the case of the subordinated notes, any other provisions in addition to any of the
provisions related to the payment of additional amounts.
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The issuers may issue notes as original issue discount notes. An original issue discount note
is a note, including a zero coupon note, offered at a discount from the principal amount of the
note due at its maturity. The applicable prospectus supplement will describe any additional
material U.S. federal income tax consequences, the amount payable in the event of an acceleration
and other special factors applicable to any original issue discount notes.
Payments of Additional Amounts
Unless otherwise specified in the applicable prospectus supplement, any amounts to be paid
with respect to the notes shall be paid without withholding or deduction for or on account of any
and all present or future taxes or duties of whatever nature imposed or levied by or on behalf of
Spain or any political subdivision or authority thereof or therein having the power to tax unless
such withholding or deduction is required by law. In such event, the issuer or, as the case may be,
the Guarantor will pay to the relevant holder such additional amounts as may be necessary in order
that the net amounts received by the note holders, or their trustees or any paying agent, after
such withholding or deduction equals the respective amounts of principal, premium, if any,
interest, if any, and sinking fund payments, if any, which would otherwise have been receivable in
respect of the notes in the absence of such withholding or deduction; except that no such
additional amounts will be payable with respect to any note:
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to, or to a third party on behalf of, a note holder who is liable for such taxes or
duties by reason of such holder (or the beneficial owner for whose benefit such holder
holds such note) having some connection with Spain other than the mere holding of such note
(or such beneficial interest) or the mere crediting of the note to such holders account;
or
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(b)
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presented for payment (where presentation is required) more than 30 days after the
Relevant Date (as defined below) except to the extent that the note holder would have been
entitled to additional amounts on presenting the same for payment on such thirtieth day
assuming that day to have been a business day in such place of presentment; or
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(c)
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to, or to a third party on behalf of, a note holder in respect of whom the issuer or
the Guarantor (or the paying agent on its behalf) does not receive such information (which
may include a tax residence certificate) concerning such note holders identity and tax
residence (as well as the identity and tax residence of the beneficial owner for whose
benefit it holds such note) as it may require in order to comply with Second Additional
Provision of Spanish Law 13/1985 of 25 May (as amended, among others, by Spanish Law
19/2003 of 4 July and Spanish Law 23/2005 of 18 November) and any implementing legislation
or regulation by 10:00 a.m. (CET) on the 10th calendar day of the month following the
Relevant Date (as defined below) upon which the payment was due (or if such date is not a
day on which commercial banks are open for general business in Spain, the day immediately
preceding such date); or
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(d)
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where such withholding or deduction is imposed on a payment to an individual and is
required to be made pursuant to European Council Directive 2003/48/EC or any other
Directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000
on the taxation of savings or any law implementing or complying with, or introduced in
order to conform to, such Directive or law; or
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(e)
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presented for payment (where presentation is required) by or on behalf of a note holder
who would be able to avoid such withholding or deduction by presenting the relevant note to
another paying agent.
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Additional amounts will also not be paid with respect to any payment to a note holder who is a
fiduciary, a partnership, a limited liability company or other than the sole beneficial owner of
that payment, to the extent that payment would be required by the laws of Spain (or any political
subdivision thereof) to be included in the income, for Spanish tax purposes, of a beneficiary or
settlor with respect to the fiduciary, a member of that partnership, an interest holder in that
limited liability company or a beneficial owner who would not have been entitled to the additional
amounts had it been the note holder.
As used above, Relevant Date means the date on which any payment first becomes due and
payable, except that if the full amount of the moneys payable has not been received by the paying
agent on or prior to such due date, it means the first date on which, the full amount of such
moneys having been so received and being available for payment to the note holders, notice to that
effect is duly given to the note holders in accordance with the provisions set forth under
Notices below.
Any reference to principal, interest or premium shall be deemed to include additional amounts
to the extent payable in respect thereof.
Optional Tax Redemption
An issuer may, in compliance with the applicable capital adequacy regulations of the Bank of
Spain from time to time in force, redeem the notes of any series it has issued, subject to the
restrictions described in this section and, in the case of subordinated notes, to the Bank of
Spains prior approval, which under current Spanish bank regulations may not be sought prior to the
fifth anniversary of the issuance of the series of subordinated notes. Subject to such
restrictions, an issuer may, at its option, redeem a series of notes it has issued in whole, but
not in part, at any time with not less than 30 days nor more than 60 days notice given in the
manner described under Notices below and in the applicable prospectus supplement and
indenture.
The redemption will be equal to 100% of the principal amount (or such other early tax
redemption amount as may be specified in the applicable prospectus supplement) plus interest
accrued to the date fixed for redemption.
A redemption under this section will only be permitted if, as a result of any change in or
amendment to the laws or regulations of Spain (including any treaty to which Spain is a party) or
any political subdivision or any authority thereof or therein having power to tax, or any change in
the application or official interpretation of such laws or regulations, which change, amendment,
application or interpretation becomes effective on or after the date of the applicable prospectus
supplement, either:
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it is determined by the issuer or the Guarantor that in making payment under the notes
or the notes guarantees, the issuer or the Guarantor, as the case may be, would become
obligated to pay additional amounts, as described in the section entitled Payments of
Additional Amounts above, with respect to
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such payment and the issuer or the Guarantor cannot avoid this obligation without
unreasonable cost or expense; or
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the Guarantor is or would be required to deduct or withhold tax on any payment to the
issuer to enable it to make any payment of principal or interest in respect of the notes
and the Guarantor cannot avoid this obligation without unreasonable cost or expense.
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The issuers and the Guarantor are not permitted to give notice to the trustee of the
redemption earlier than 60 days prior to the earliest date on which an issuer or the Guarantor
would be obligated to deduct or withhold tax or pay additional amounts were a payment on the notes
or the notes guarantees then due.
In the case of any merger, consolidation, sale or conveyance not considered an event of
default, the acquiring or resulting corporation will also be entitled to redeem the notes in the
circumstances described above for any change or amendment to, or change in the application or
official interpretation of, the laws or regulations of such corporations jurisdiction of
incorporation or tax residence, which change or amendment must occur subsequent to the date of the
merger, consolidation, sale, conveyance or lease if the acquiring or resulting corporation is not
incorporated or tax resident in Spain.
Form, Transfer, Payment and Paying Agents
Unless otherwise indicated in the applicable prospectus supplement, each series of notes will
be issued in registered form only, without coupons. There will not be any service charge for any
transfer or exchange of notes payable to the issuer, but the issuer may require payment to cover
any tax or other governmental charge payable and any other expenses (including the fees and
expenses of the trustee) that may be imposed in that regard.
Unless the applicable prospectus supplement provides otherwise, the principal, premium and
interest on the notes of a particular series will be payable, and transfer or exchange of the notes
will be registrable, at the corporate trust office of The Bank of New York Mellon, as paying agent
and securities registrar under the applicable indenture. However, BBVA U.S. Senior or BBVA
Subordinated Capital may elect to pay any interest by check mailed to the address of the entitled
person as it appears in the security register at the close of business on the regular record date
for the interest or by transfer to an account maintained by the payee with a bank located in the
United States.
Unless the applicable prospectus supplement provides otherwise, payment of interest on and any
additional amounts with respect to a note on any interest payment date will be made to the person
in whose name the note is registered at the close of business on the regular record date for the
interest.
Global Certificates
The issuers may issue the notes of a series in whole or in part in the form of one or more
global certificates representing the notes. Unless otherwise stated in the applicable prospectus
supplement, DTC will act as securities depository for the notes. Therefore, issuers will issue the
notes only as registered securities registered in the name of Cede & Co. (DTCs nominee) and will
deposit with DTC one or more registered certificates representing in aggregate the total number of
such notes.
As long as DTC or its nominee is the registered holder of a global certificate representing
notes, DTC or its nominee, as the case may be, will be considered the sole owner and holder of the
notes represented by that global certificate for all purposes under the applicable indenture and
the notes. Except as described below, owners of beneficial interests in a note represented by a
global certificate will not be entitled to have the notes represented by such global certificate
registered in their names, will not receive or be entitled to receive physical delivery of
certificated notes (as defined below) and will not be considered the holders of such notes under
the applicable indenture. Accordingly, each person owning a beneficial interest in a note
represented by a global certificate must rely on the procedures of DTC and, if that person is not a
participant in DTC, on the procedures of the participant in DTC through which the person owns its
interest, to exercise any rights of a beneficial owner under the applicable indenture.
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Beneficial interests in notes of any series represented by a global certificate will be
exchangeable for notes of such series represented by individual security certificates, or
certificated notes, and registered in the name or names of owners of such beneficial interests as
specified in instructions provided by DTC to the trustee only if:
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DTC notifies the issuer that it is unwilling or unable to continue to act as depositary
or that it is no longer a clearing agency registered under the Exchange Act and, in either
case, a successor depositary is not appointed by the issuer within 60 days after the date
of such written notice from DTC;
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the issuer notifies the trustee in writing that it has elected to cause the issuance of
definitive registered notes of such series; or
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there shall have occurred and be continuing an Event of Default (as defined below) with
respect to the notes of such series and the notes of such series.
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Outstanding Notes
In determining whether the holders of the requisite principal amount of outstanding notes have
given any request, demand, authorization, direction, notice, consent or waiver under the notes or
the indentures or are present at a meeting of the Syndicate for quorum purposes, any note owned by
the issuer, the Guarantor or any other obligor upon the notes or any affiliate of the issuer, the
Guarantor or such other obligor (if any such notes are so owned), will be deemed not to be
outstanding. In addition, the portion of the principal amount of an original issue discount note
that will be outstanding will be the amount that would be declared due and payable as of the date
of determination and, unless the applicable prospectus supplement provides otherwise, the principal
amount of an indexed note that will be outstanding will be the principal face amount determined on
the date of its original issuance.
Syndicate of Holders, Meetings, Modifications and Waivers
Syndicate of Holders
The Spanish Corporation Law (
Ley de Sociedades Anónimas
) requires that a syndicate (
sindicato
)
of holders of notes be established in relation to each series of notes constituting all holders of
notes of such series at any particular time (the Syndicate).
Each Syndicate of each particular series is governed by its own regulations (the
Regulations). The Regulations contain the rules governing the functioning of the Syndicate and
the rules governing its relationship to the relevant issuer and are attached to the relevant
Spanish public deed of issuance with respect to such series of notes. A form of the Regulations is
attached to each indenture.
As provided in the Regulations, each Syndicate will be represented by the commissioner
(
comisario
) of the Syndicate (the Commissioner), who will be the chairman and the legal
representative of the Syndicate and shall protect the common interest of the holders of the notes.
The Bank of New York Mellon shall serve as Commissioner of the Syndicate of each series of notes
until it resigns or is removed as trustee and a person shall have become successor trustee with
respect to such series of notes under the applicable indenture. Thereafter, the Commissioner shall
be such successor trustee.
By purchasing a note, the holder of that note is also deemed to have agreed to membership in
the Syndicate in respect of notes of such series and, if such holder purchased such note prior to
the record date for the first meeting of the Syndicate, to have granted full power and authority to
The Bank of New York Mellon with respect to notes of such series to act as its proxy to vote at the
first meeting of the Syndicate of holders of notes of such series in favor of the ratification of
the Regulations in respect of such Syndicate, the ratification of the designation and appointment
of The Bank of New York Mellon as Commissioner of such Syndicate and the ratification of the
actions of the Commissioner performed prior to such first meeting of the Syndicate. The
Commissioner is the chairperson and the legal representative of the Syndicate.
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Meetings
Holders of notes of each series shall meet in accordance with the Regulations. Except as
otherwise provided under the relevant indenture, the Regulations governing the Syndicate of holders
of notes of a series or the Trust Indenture Act, any request, demand, authorization, direction,
notice, consent, waiver or other action provided by or pursuant to the relevant indenture to be
given or taken by holders of notes of the relevant series shall be given or taken only by
resolution duly adopted in accordance with the relevant indenture and the Regulations governing the
Syndicate of holders of notes of the relevant series at a meeting of such Syndicate duly called and
held in accordance with such Regulations, which resolution as so adopted is referred to as the
Act of the holders. Any such meeting is expected to be held in the city where the Commissioner
has its principal executive offices, which is currently New York, New York.
Convening Meetings
The indentures and the Regulations contain provisions for convening meetings of holders of
each series of notes to consider matters affecting their interests. A meeting of holders of notes
of a series may be called at the request of:
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the Commissioner on the Commissioners own initiative or at the request of the
applicable trustee or issuer; or
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the Commissioner upon the request of holders of notes representing at least 5% of the
outstanding aggregate principal amount of the notes of such series.
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Quorums
Two-thirds in principal amount of the outstanding notes of the relevant series shall
constitute a quorum for a meeting of the Syndicate of the holders of notes of that series, and if
such a quorum is present or duly represented, all matters set forth in the relevant notice shall be
voted on at such meeting. In the absence of a quorum, the meeting shall be adjourned for a period
of not less than 30 days. A majority in principal amount of the outstanding notes of the relevant
series shall constitute a quorum for any such reconvened meeting of the Syndicate of the holders of
notes of that series, and if such a quorum is present, all matters set forth in the relevant notice
shall be voted on at such meeting.
Voting
Voting at a meeting of the Syndicate shall be by written ballot and may be conducted by proxy.
Resolutions may be adopted and decisions may be taken at a meeting of the Syndicate only by the
affirmative vote of holders present or duly represented at such meeting of outstanding notes of the
relevant series representing a majority of principal amount of the notes of such series outstanding
on the applicable record date. Any resolution duly adopted or decision duly taken in accordance
with the applicable Regulations at any meeting of the Syndicate of holders of notes of a series
duly held in accordance with such Regulations shall be binding on all holders of outstanding notes
of such series, whether or not such holders were present or represented at such meeting.
Notwithstanding the above, any resolution of a Syndicate of holders of notes of a series with
respect to any request, demand, authorization, direction, notice, consent or waiver which the
relevant indenture or the Trust Indenture Act expressly provides must be made, given or taken by
the holders of a specified percentage in principal amount of outstanding notes of a series, or by
each holder of outstanding notes of the relevant series, as the case may be, may be adopted only by
the affirmative vote of the holders of such specified percentage in principal amount of the
outstanding notes of the relevant series, or each holder of notes of the relevant series, as the
case may be.
Furthermore, notwithstanding any other provision of the Regulations applicable to notes of a
series, nothing in the Regulations shall limit the rights of any holder of outstanding notes of
such series to make any request, demand, authorization, direction, notice, consent or waiver
individually or collectively outside the Syndicate of holders of notes of such series where the
relevant indenture or the Trust Indenture Act expressly provides that such request, demand,
authorization, direction, notice, consent or waiver may be made, given or taken individually or
collectively outside such Syndicate, as the case may be, by holders of outstanding notes of the
relevant series.
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Modification With Consent of Holders
An issuer, the Guarantor (in each case, when authorized by or pursuant to a board resolution)
and the applicable trustee may amend or modify the applicable indenture and may waive any future
compliance with such indenture by the issuer or the Guarantor with the consent, as evidenced in an
Act or Acts, of the holders of not less than a majority in principal amount of the outstanding
notes of each series affected thereby voting as a class. However, the modification, amendment or
waiver may not, without the consent or the affirmative vote of the holder of each note affected:
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change the stated maturity of the principal of, or any premium or installment of
interest on or any additional amounts with respect to, any note, or reduce the principal
amount thereof or the rate of interest thereon (except that holders of not less than 75% in
principal amount of outstanding notes of a series may consent by Act, on behalf of the
holders of all of the outstanding notes of such series, to the postponement of the stated
maturity of any installment of interest for a period not exceeding three years from the
original stated maturity of such installment (which original stated maturity shall have
been fixed, for the avoidance of doubt, prior to any previous postponements of such
installment));
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reduce the principal amount of, the rate of interest on, any additional amounts with
respect to or any premium payable upon the redemption of such notes or otherwise;
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change the obligation of the issuer or the Guarantor to pay additional amounts;
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reduce the amount of the principal of an original issue discount note that would be due
and payable upon a declaration of acceleration of the maturity of the note or the amount
thereof provable in bankruptcy;
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change the redemption provisions or adversely affect the right of repayment at the
option of the holder;
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change the place or currency of payment of principal, premium, interest or any
additional amounts, except as described under Form, Transfer, Payment and Paying
Agents;
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impair the right to take legal action to enforce the payment when due of principal of,
premium, if any, or interest on or any additional amounts with respect to the notes;
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reduce the percentage in principal amount of notes outstanding necessary to modify or
amend the indenture or the terms and conditions of the notes or to waive a default under or
compliance with any note or reduce the requirement for a quorum or voting;
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modify the provisions governing modification of such indenture with the consent of
holders or give waivers of past defaults, and the consequences of such defaults, except to
increase the percentage of outstanding notes necessary to modify and amend such indenture
or to give any such waiver and except to provide that additional provisions of such
indenture cannot be modified or waived without the consent of each holder of notes affected
thereby; or
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change in any manner adverse to the interests of the holders of outstanding notes of any
series the terms and conditions of the obligations of the issuers or the Guarantor in
respect of the due and punctual payment of principal, premium or interest or sinking fund
payments, including any additional amounts.
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The holders of a majority in aggregate principal amount of the outstanding notes of any series
on behalf of the holders of all the notes of such series may, by Act, waive any past default under
the indenture with respect to that series, except a default in payment of principal, premium,
interest, or additional amounts or in the performance of certain covenants specified in the
relevant indenture or a default with respect to a provision which cannot be modified or amended
without the consent of each affected holder of outstanding notes of a particular series.
Modification without Consent of Holders
An issuer, the Guarantor (in each case, when authorized by or pursuant to a board resolution)
and the applicable trustee may modify and amend the applicable indenture without the consent of the
holders to:
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evidence the succession of another entity to the issuer or the Guarantor, and the
assumption by any such successor of the covenants of the issuer or the Guarantor in such
indenture and in the notes or the notes guarantees;
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add to covenants of the issuer or the Guarantor for the benefit of the holders of all or
any series of notes or to surrender any right or power conferred upon the issuer or the
Guarantor;
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establish the form or terms of notes of any series;
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provide for the appointment of a successor trustee;
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cure any ambiguity or correct or supplement any defect or inconsistency in such
indenture, or make any other provisions with respect to matters or questions arising under
the relevant indenture which do not adversely affect the interests of the holders of notes
of any series in any material respect;
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add to, delete from or revise the conditions, limitations and restrictions on the
authorized amount, terms or purposes of issue, authentication and delivery of notes;
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supplement any of the provisions of such indenture to such extent as shall be necessary
to permit or facilitate the defeasance and discharge of any series of notes, provided such
action does not adversely affect the interests of any holders of notes of such series or
any other series in any material respect;
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add any additional events of default for the benefit of the holders of all or any series
of notes;
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secure any notes; or
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amend or supplement any provision of such indenture or any indenture supplement thereto,
provided such actions will not materially adversely affect the interests of the holders of
notes then outstanding.
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Substitution of the Issuer
The Guarantor or any controlled subsidiary of the Guarantor may assume the obligations of an
issuer under the notes, subject to the prior consent of the Bank of Spain with respect to the
subordinated notes, without the consent of the holders of the notes. Any notes so assumed, except
if assumed by the Guarantor, will have the benefit of the related notes guarantees. In the event of
an assumption of the obligations of an issuer by the Guarantor, the subordination provisions of the
subordinated guarantees will apply to the subordinated notes so assumed and the subordination
provisions of the subordinated notes will no longer apply. In the event of any assumption,
additional amounts under the notes will be payable for taxes imposed by the jurisdiction of
incorporation or tax residence of the assuming entity (subject to exceptions equivalent to those
that apply to the obligation to pay additional amounts for taxes imposed by the laws of Spain)
rather than taxes imposed by Spain.
Additional amounts for payments of interest or principal due prior to the date of the
assumption will be payable only for taxes imposed by Spain. The Guarantor or the controlled
subsidiary of the Guarantor that assumes the obligations of an issuer will also be entitled to
redeem the notes in the circumstances described above under the section entitled Optional Tax
Redemption for any change or amendment to, or change in the application or official interpretation
of, the laws or regulations of the assuming entitys jurisdiction of incorporation or tax
residence, which change or amendment must occur subsequent to the date of such assumption if the
assuming entity is not incorporated or tax resident in Spain. Upon such assumption, the applicable
issuer will be released from all its obligations under the applicable notes and indentures.
An assumption of the obligations of an issuer under the notes might be considered for U.S.
federal income tax purposes to be an exchange by the holders of the notes for new notes, resulting
in recognition of taxable gain or loss for these purposes and possible other adverse tax
consequences for such holders. Holders should consult their tax advisors regarding the U.S.
federal, state and local income tax consequences of an assumption.
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Discharge, Defeasance and Covenant Defeasance
An issuer or the Guarantor may discharge certain obligations to holders of any series of notes
and related notes guarantees that have not already been delivered to the applicable trustee for
cancellation and that have become due and payable, will become due and payable at their stated
maturity within one year or, if redeemable at the option of the issuer, are to be called for
redemption within one year, by depositing or causing to be deposited with the applicable trustee,
in trust, funds in an amount sufficient to pay and discharge the entire indebtedness on such notes,
including principal, interest, premium and any additional amounts to the date of such deposit (if
such notes have become due and payable) or to the maturity date of such notes, as the case may be.
An issuer or the Guarantor may also elect to have its obligations under the indenture
discharged with respect to the outstanding notes of any series and related notes guarantees (legal
defeasance). Legal defeasance means that the issuer will be deemed to have paid and discharged the
entire indebtedness represented by the outstanding notes of such series under the relevant
indenture and that the Guarantor will be deemed to have satisfied all of its obligations under the
relevant indenture and with respect to the notes guarantees related to such notes, except for:
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the rights of holders of the outstanding notes to receive principal, interest, any
premium and any additional amounts when due from the trust described below;
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the obligations of the issuer or the Guarantor to issue temporary notes, register the
transfer of notes, replace temporary or mutilated, destroyed, lost or stolen notes, pay
additional amounts, maintain an office or agency for payment and hold money for payments in
trust;
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the rights, powers, trusts, duties and immunities of the applicable trustee; and
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the defeasance provisions of the applicable indenture.
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In addition, an issuer or the Guarantor may elect to have its obligations released with
respect to certain covenants in the indentures (covenant defeasance). Any omission to comply with
any obligations so released will not constitute a default or an event of default with respect to
the notes of any series.
In order to exercise either legal defeasance or covenant defeasance with respect to
outstanding notes of or within any series and the related notes guarantees:
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the issuer or the Guarantor must irrevocably have deposited or caused to be deposited
with the applicable trustee, in trust, money, in U.S. dollars or in the foreign currency in
which such notes are payable at stated maturity, or U.S. government obligations or a
combination of money and U.S. government obligations applicable to such notes which through
the scheduled payment of principal and interest in accordance with their terms will provide
money in an amount sufficient to pay and discharge when due all of the principal, interest
and any premium of such notes and any mandatory sinking fund or analogous payments thereon;
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the legal defeasance or covenant defeasance must not result in a breach or violation of,
or constitute a default under, the applicable indenture or any other material agreement or
instrument to which the issuer or the Guarantor is a party or by which it is bound;
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no event of default or event which, with notice or lapse of time, or both, would become
an event of default with respect to the outstanding notes of that series may have occurred
and be continuing on the date of the establishment of such a trust, and in the case of
legal defeasance, at any time during the period ending on the 91st day after such date;
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the issuer or the Guarantor must have delivered to the applicable trustee an opinion of
counsel of internationally recognized standing to the effect that the holders of such notes
will not recognize income, gain or loss for U.S. federal income tax purposes as a result of
the legal defeasance or covenant defeasance and will be subject to U.S. federal income tax
on the same amounts, in the same manner and at the same times as would have been the case
if the legal defeasance or covenant defeasance had not occurred. In the case of legal
defeasance only, the opinion of counsel must refer to and be based upon a letter ruling of the
Internal Revenue Service received by the issuer, a Revenue Ruling published by the Internal
Revenue
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Service or a change in applicable U.S. federal income tax law occurring after the
date of the applicable indenture;
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the legal defeasance or covenant defeasance must not cause the applicable trustee to
have a conflicting interest within the meaning of the Trust Indenture Act (assuming all
relevant notes are in default within the meaning of such Act);
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the legal defeasance or covenant defeasance must not result in the trust arising from
such deposit constituting an investment company within the meaning of the Investment
Company Act of 1940, as amended, unless such trust shall be registered under such Act or
exempt from registration thereunder; and
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in the case of the subordinated notes, BBVA Subordinated Capital or the Guarantor shall
have delivered to the applicable trustee an opinion of counsel substantially to the effect
that (i) the trust funds deposited to effect the legal defeasance or covenant defeasance
will not be subject to any rights of holders of Issuer Senior Indebtedness or Guarantor
Senior Indebtedness (each as defined below under Subordinated Notes and Subordinated
Guarantees), including those arising under the applicable subordination provisions of the
subordinated indenture, and (ii) after the second anniversary following the deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors rights generally, except that if a
court were to rule under any such law in any case or proceeding that the trust funds
remained property of BBVA Subordinated Capital or the Guarantor, no opinion is given as to
the effect of such laws on the trust funds except in certain limited circumstances set
forth in the subordinated indenture.
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Unless otherwise provided in the applicable prospectus supplement, if, after an issuer or the
Guarantor has deposited funds or U.S. government obligations to effect legal defeasance or covenant
defeasance with respect to notes of any series,
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the holder of a note of such series is entitled to elect and does elect to receive
payment in a currency other than that in which such deposit has been made in respect of
such note; or
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a conversion event (as defined below) occurs in respect of the foreign currency in
which such deposit has been made; then,
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the indebtedness represented by such note and the related notes guarantee shall be deemed to
have been and will be fully discharged and satisfied through the payment of the principal of
interest and any premium on such note as it becomes due out of the proceeds yielded by converting
the amount or other property so deposited into the currency in which such note becomes payable as a
result of such election or such conversion event based on the applicable market exchange rate for
such currency in effect on the second business day prior to such payment date, except, with respect
to a conversion event, for such foreign currency in effect at the time of the conversion event.
A conversion event means the cessation of use of (i) a foreign currency both by the
government of the country which issued such currency and for the settlement of transactions by a
central bank or other public institutions of or within the international banking community, or (ii)
the euro both within the European monetary system and for the settlement of transactions by public
institutions of or within the EU.
In the event the issuer or the Guarantor effects covenant defeasance with respect to any notes
and such notes are declared due and payable because of the occurrence of any event of default, the
amount in money and U.S. government obligations deposited in trust will be sufficient to pay
amounts due on such notes at the time of their stated maturity. They may not, however, be
sufficient to pay amounts due on such notes at the time of the acceleration resulting from such
event of default. In this case, the issuer and the Guarantor will remain liable to make payment of
such amounts due at the time of acceleration.
The applicable prospectus supplement may further describe the provisions permitting legal
defeasance or covenant defeasance, including any modifications to the provisions described above,
with respect to the notes of a particular series.
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Notices
All notices to holders of registered notes shall be validly given if mailed to them at their
respective addresses in the register maintained by the applicable trustee. In addition, notice of
any meeting of a Syndicate of holders of notes of a particular series shall be validly given if
done in accordance with the Regulations of the Syndicate of holders of notes of such series.
The Trustee
The Bank of New York Mellon, the trustee currently appointed pursuant to the indentures, is
organized and exists under the laws of the State of New York and has its corporate trust office
located at 101 Barclay Street, New York, NY 10286. Any trustee appointed pursuant to the senior
indenture or the subordinated indenture shall have and be subject to all the duties and
responsibilities specified with respect to an indenture trustee under the Trust Indenture Act.
Subject to the provisions of the Trust Indenture Act, a trustee is under no obligation to
exercise any of the powers vested in it by the indentures at the request of any holder of notes,
unless offered reasonable security or indemnity by the holder against the costs, expenses and
liabilities which might be incurred thereby.
The Guarantor and some of its subsidiaries maintain deposits with and conduct other banking
transactions with The Bank of New York Mellon in the ordinary course of business.
Successor Trustees
Any trustee in respect of the notes of a series may resign or be removed by holders of a
majority in principal amount of notes at any time, effective upon the acceptance by a successor
trustee of the respective appointment. The indentures provide that any successor trustee will have
a combined capital and surplus of not less than $50,000,000 and shall be a corporation,
association, company or business trust organized and doing business under the laws of the United
States or any of its states or territories or the District of Columbia and in good standing. No
person shall accept its appointment hereunder as a successor trustee with respect to the notes of a
series unless at the time of such acceptance such successor trustee shall be qualified and eligible
under the relevant article of the relevant indenture and agree to thereby become Commissioner of
the Syndicate of holders of notes of such series.
Repayment of Funds
All monies paid by an issuer or the Guarantor to the applicable trustee or a paying agent for
payment of principal, premium or interest and any additional amounts on any notes which remain
unclaimed at the end of two years after that payment has been made will be repaid to the issuer or
the Guarantor on issuer request in proportion to their respective payments of the monies which
remain unclaimed, and all liability of the applicable trustee or the paying agent related to it
will cease, and, if permitted by law, the holder of the applicable note will look only to the
issuer or the Guarantor for payment as its general unsecured creditor.
Prescription
All claims against an issuer or the Guarantor for payment of principal or interest, including
additional amounts, on or for the notes will become void unless made within ten years, in the case
of principal, and five years, in the case of interest, including additional amounts, from the later
of the date on which that payment first became due and the date on which the full amount was
received by the trustee.
Governing Law
The notes and the indentures will be governed by and construed under the laws of the State of
New York applicable to agreements made or instruments entered into and, in each case, performed in
said state, except that the authorization and execution by the issuers and the Guarantor of the
indentures and the notes, certain provisions of the notes and the indentures related to the
establishment of a Syndicate and the appointment of a Commissioner,
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certain provisions of the indentures related to the execution and delivery of the notes
guarantees and certain provisions of the subordinated notes and the subordinated indenture related
to the subordination of the subordinated notes and the subordinated guarantees shall be governed by
and construed in accordance with Spanish law. The notes guarantees will be governed by and
construed in accordance with Spanish law. The Regulations of each Syndicate and the duties of and
all matters relating to the Commissioner shall be governed by and construed in accordance with
Spanish law.
Senior Notes and Senior Guarantees
The senior notes will be direct, unconditional and unsecured indebtedness of BBVA U.S. Senior
and will rank
pari passu
with all other unsubordinated and unsecured indebtedness of BBVA U.S.
Senior, but in the case of insolvency, only to the extent permitted by creditors rights. The
senior guarantees will constitute direct, unconditional, unsubordinated and unsecured obligations
of the Guarantor and will at all times rank
pari passu
among themselves and
pari passu
with all
other unsubordinated and unsecured indebtedness of the Guarantor, but in the case of insolvency,
only to the extent permitted by creditors rights.
The Guarantor will unconditionally and irrevocably guarantee the due and punctual payment of
any principal of and premium, if any, and interest on the senior notes, payments to sinking funds,
if applicable, and additional amounts or any other amounts of whatever nature which may become
payable under the senior notes or the senior indenture. If the Guarantor experiences bankruptcy
proceedings, the rights and claims of holders under the senior guarantees will, under Spanish law,
rank equally with all other unsubordinated and unsecured indebtedness.
The senior guarantees will remain in effect until the entire principal and interest on the
related senior notes have been paid in full under the provisions of the senior notes, senior
guarantees and senior indenture, or until the Guarantor and BBVA U.S. Seniors obligations under
the senior notes have been satisfied in accordance with the provisions of the senior notes, the
senior guarantees and the senior indenture.
Holders of senior notes may proceed directly against the Guarantor in case of a default under
the senior notes without first proceeding against BBVA U.S. Senior.
Events of Default
Event of Default, wherever used below with respect to senior notes of any series, means any
one of the following events, unless such event is specifically deleted or modified in or pursuant
to supplemental indentures or Board resolutions creating a particular series of senior notes or in
the officers certificate for such series:
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default by BBVA U.S. Senior, or the Guarantor pursuant to the applicable senior
guarantees, in the payment of the principal of any senior note of such series when due and
payable at its maturity and such default is not remedied within 14 days;
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default by BBVA U.S. Senior, or the Guarantor pursuant to the applicable senior
guarantee, in the payment of any interest on or any additional amounts payable in respect
of any senior note of such series when such interest becomes or such additional amounts
become due and payable, and continuance of such default for a period of 21 days;
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default by BBVA U.S. Senior, or the Guarantor pursuant to the applicable senior
guarantee, in the payment of any premium or deposit of any sinking fund payment, when and
as due by the terms of a senior note of such series and such default is not remedied in 30
days;
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default in the performance or breach of certain covenants or warranties of BBVA U.S.
Senior in the senior indenture or the senior notes, or the Guarantor in the senior
indenture or the related senior guarantees, and continuance of such breach or default for a
period of 30 days after there has been given, by registered or certified mail, to BBVA U.S.
Senior and the Guarantor by the trustee or to BBVA U.S. Senior, the Guarantor and the
trustee by any holder or the holders of any outstanding senior notes of such series a
written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a Notice of Default under the senior indenture;
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40
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any capital markets indebtedness (as defined in the senior indenture) of either BBVA
U.S. Senior or the Guarantor individually where the principal amount of such capital
markets indebtedness is in any case in excess of $50,000,000 (or its equivalent in another
currency or other currencies) or any guarantee by BBVA U.S. Senior or the Guarantor of any
capital markets indebtedness of any other person is not (in the case of capital markets
indebtedness) paid when due (after the longer of 30 days after the due date and any
applicable grace period therefor) or becomes prematurely due and payable following a
default on the part of BBVA U.S. Senior or the Guarantor or otherwise in respect of such
capital markets indebtedness, or (in the case of a guarantee) is not honored when due
(after the longer of 30 days after the due date and any applicable grace period therefor);
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an order of any competent court or administrative agency is made or any resolution is
passed by BBVA U.S. Senior for the winding-up or dissolution of BBVA U.S. Senior (other
than for the purpose of an amalgamation, merger or reconstruction approved by an Act of the
holders relating to such series);
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an order is made by any competent court commencing insolvency proceedings
(
procedimientos concursales
) against the Guarantor or an order is made or a resolution is
passed for the dissolution or winding up of the Guarantor, except in any such case for the
purpose of a reconstruction or a merger or amalgamation which has been approved by an Act
of the holders relating to such series, or where the entity resulting from any such
reconstruction or merger or amalgamation is a financial institution (
entidad de crédito
according to article 1-2 of Real Decreto Legislativo 1298
/1986 dated 28 June 1986, as
amended and restated) and will have a rating for long-term senior debt assigned by Standard
& Poors Rating Services, Moodys Investors Services or Fitch Ratings Ltd equivalent to or
higher than the rating for long-term senior debt of the Guarantor immediately prior to such
reconstruction or merger or amalgamation;
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BBVA U.S. Senior or the Guarantor is adjudicated or found bankrupt or insolvent, or any
order of any competent court or administrative agency is made for, or any resolution is
passed by BBVA U.S Senior or the Guarantor to apply for, judicial composition proceedings
with its creditors or for the appointment of a receiver or trustee or other similar
official in insolvency proceedings in relation to BBVA U.S. Senior or the Guarantor or of a
substantial part of the assets of either of them (unless in the case of an order for a
temporary appointment, such appointment is discharged within 30 days);
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BBVA U.S. Senior or the Guarantor stops payment of its debts generally;
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BBVA U.S. Senior (except for the purpose of an amalgamation, merger or reconstruction
approved by an Act of the holders relating to such series) or the Guarantor (except for the
purpose of an amalgamation, merger or reconstruction approved by an Act of the holders
relating to such series, or where the entity resulting from any such amalgamation, merger
or reconstruction will have a rating for long-term senior debt assigned by Standard &
Poors Rating Services, Moodys Investor Services or Fitch Ratings Ltd equivalent to or
higher than the rating for long-term senior debt of the Guarantor immediately prior to such
amalgamation, merger or reconstruction) ceases or threatens to cease to carry on the whole
or substantially the whole of its business;
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a holder of a security interest takes possession of the whole or any substantial part of
the assets or business of BBVA U.S. Senior or the Guarantor or an application is made for
the appointment of an administrative or other receiver, manager, administrator or similar
official in relation to BBVA U.S. Senior or the Guarantor or in relation to the whole or
any substantial part of the business or assets of BBVA U.S. Senior or the Guarantor, or a
distress or execution is levied or enforced upon or sued out against any substantial part
of the business or assets of BBVA U.S. Senior or the Guarantor and is not discharged within
30 days; or
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the senior guarantees with respect to senior notes of such series cease to be, or are
claimed by the Guarantor not to be, in full force and effect.
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For the purpose of the above definition, a report by the external auditors from time to time
of the issuer or the Guarantor, as the case may be, as to whether any part of the business or
assets of the issuer or the Guarantor is substantial shall, in the absence of manifest error, be
conclusive.
41
If an Event of Default with respect to the senior notes of any series at the time outstanding
occurs and is continuing, then the applicable trustee, acting pursuant to an Act (as defined in the
senior indenture) of the holders of the senior notes of the relevant series, with respect to all
outstanding senior notes of such series, or the holder of any outstanding senior note of the
relevant series, with respect to such senior note held by such holder, may declare the principal,
or such lesser amount as may be provided for in the senior notes of such series, of such senior
notes or senior note, as the case may be, to be due and payable immediately in accordance with the
terms of the senior indenture.
At any time after such a declaration of acceleration with respect to the senior notes or a
senior note, as the case may be, of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the applicable trustee as provided in the senior
indenture, the holders of not less than a majority in principal amount of the outstanding senior
notes of such series may, by Act (as defined in the senior indenture) rescind and annul such
declaration and its consequences if:
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1.
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BBVA U.S. Senior or the Guarantor has paid or deposited with the applicable trustee a
sum of money sufficient to pay:
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(A) all overdue installments of any interest on and additional amounts with respect
to all senior notes of such series;
(B) the principal of and any premium on any senior notes of such series which have
become due otherwise than by such declaration of acceleration and interest thereon and
any additional amounts with respect thereto at the rate or rates borne by or provided
for in such senior notes;
(C) to the extent that payment of such interest or additional amounts is lawful,
interest upon overdue installments of any interest and additional amounts at the rate
or rates borne by or provided for in such senior notes; and
(D) all sums paid or advanced by the applicable trustee and the reasonable
compensation, expenses, disbursements and advances of the applicable trustee, its
agents and counsel and all other amounts due to the applicable trustee under the senior
indenture; and
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2.
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all Events of Default with respect to senior notes of such series, other than the
non-payment of the principal of and any premium and interest on, and any additional amounts
with respect to senior notes of such series which shall have become due solely by such
declaration of acceleration, shall have been cured or waived as provided in the senior
indenture.
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No such rescission shall affect any subsequent default or impair any right consequent thereon.
Subject to payment of the applicable trustees fees and expenses, the holders of not less than
a majority in principal amount of the outstanding senior notes of any series on behalf of the
holders of all the senior notes of such series may, by Act (as defined in the senior indenture)
waive any past Event of Default under the senior indenture with respect to such series and its
consequences, except a default in the payment of the principal of or any premium, or interest on,
or any additional amounts with respect to, any senior note of such series or a covenant or
provision of the senior indenture that cannot be modified or amended without the consent of each
holder of outstanding senior notes of such series.
No holder of any of the senior notes of any series has the right to institute any proceeding,
judicial or otherwise, with respect to the senior indenture or any remedy thereunder, unless (i)
such holder has previously given written notice to the applicable trustee of a continuing Event of
Default with respect to the senior notes of such series; (ii) the holders of not less than 25% in
principal amount of the outstanding senior notes of such series have made written request to the
applicable trustee to institute proceedings in respect of such Event of Default as trustee under
the senior indenture with respect to such series of senior notes and such holder or holders have
offered to the applicable trustee reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request; (iii) the applicable trustee has failed to
institute any such proceeding within 60 days after its receipt of such notice, request and offer of
indemnity; and (iv) the applicable trustee has not received any direction inconsistent
42
with such written request during such 60-day period by the holders of a majority in principal
amount of the outstanding senior notes of such series.
Such limitations described above do not, however, apply to the right of each holder, which is
absolute and unconditional, to receive payment of the principal of, any premium and, subject to
certain provisions in the senior indenture with respect to payment of defaulted interest, interest
on, and any additional amounts with respect to, his or her senior note or notes on or after the
respective maturity or maturities therefor specified in such senior notes (or, in the case of
redemption, on or after the redemption date or, in the case of repayment at the option of such
holder if provided in or pursuant to the applicable senior indenture, on or after the date such
repayment is due) and to institute suit for the enforcement of any such payment, which cannot be
impaired or affected without the consent of such holder, except that holders of not less than 75%
in principal amount of outstanding senior notes of a series may consent by Act (as defined in the
senior indenture) on behalf of the holders of all outstanding senior notes of such series, to the
postponement of the maturity of any installment of interest for a period not exceeding three years
from the original maturity of such installment (which original maturity shall have been fixed, for
the avoidance of doubt, prior to any previous postponements of such installment).
Within 90 days after the occurrence of any default under the senior indenture known to the
applicable trustee with respect to the senior notes of any series, such trustee shall transmit by
mail to all holders of senior notes of such series entitled to receive reports, notice of such
default, unless such default shall have been cured or waived. Except in the case of a default in
the payment of the principal of (or premium, if any), or interest, if any, on, or additional
amounts with respect to, any senior note of such series, such trustee may withhold such notice if
and so long as the board of directors, the executive committee or a trust committee of directors
and/or responsible officers of such trustee in good faith determine that the withholding of such
notice is in the best interest of the holders of senior notes of such series. For the purpose of
this paragraph, the term default means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to senior notes of such series.
Subordinated Notes and Subordinated Guarantees
As used in this section:
Issuer Senior Indebtedness
means Senior Indebtedness of BBVA Subordinated Capital.
Guarantor Senior Indebtedness
means Senior Indebtedness of the Guarantor.
Senior Indebtedness
means, with respect to any person, all rights and claims, whether
outstanding on the date of the subordinated indenture or thereafter created, incurred, assumed or
guaranteed, and all amendments, renewals, extensions, modifications and refundings of indebtedness
or obligations represented by such rights and claims, (i) of privileged creditors (
acreedores
privilegiados
), unsecured and unsubordinated creditors (
acreedores comunes
) and insolvency estate
creditors (
acreedores contra la masa
) of such person, as determined in accordance with the
Insolvency Law (as defined below); or (ii) if such Insolvency Law is no longer in effect, all of
such rights and claims of all creditors of such person, unless in any such case the instrument by
which the indebtedness or obligations represented by such rights and claims are created, incurred,
assumed or guaranteed by such person, or are evidenced, provides that they are subordinate, or are
not superior, in right of payment to the subordinated notes.
Subordination of Subordinated Notes
BBVA Subordinated Capitals obligations under the subordinated notes, whether on account of
principal, interest or otherwise, will constitute direct, unconditional and subordinated
obligations. If and to the extent that there is a deficiency in any payment in respect of the
subordinated notes and such deficiency is not remedied as a result of a demand for payment under
the subordinated guarantee (but without prejudice to the subordinated status of the subordinated
guarantee pursuant to the subordinated guarantee) the claims of the holders in respect of such
deficiency will, in the event of insolvency (
concurso
) of BBVA Subordinated Capital (under Spanish
law 22/2003 of 9 June, as amended from time to time (the Insolvency Law)) or any voluntary or
mandatory liquidation of BBVA Subordinated Capital or similar procedure, fall within the category
of subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) and will rank in
right of payment after Issuer Senior Indebtedness (as defined above) and will at all times rank
pari passu
among themselves and
pari passu
with all other present and future
43
subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) of BBVA
Subordinated Capital, except for certain subordinated obligations prescribed by law and
subordinated obligations which are expressed to rank junior to the subordinated notes. Accordingly,
no amount shall be payable by BBVA Subordinated Capital to the holders of subordinated notes in
respect of such deficiency until the claims with respect to all Issuer Senior Indebtedness (other
than as aforesaid) admitted in the insolvency (
concurso
) of BBVA Subordinated Capital under the
Insolvency Law or any voluntary or mandatory liquidation of BBVA Subordinated Capital or similar
procedure have been satisfied pursuant to the laws of Spain and any amounts in respect of such
deficiency thereafter paid to the applicable trustee will be
pari passu
with the amounts payable
with respect to subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) of
BBVA Subordinated Capital in the insolvency (
concurso
) of BBVA Subordinated Capital under the
Insolvency Law or any voluntary or mandatory liquidation of BBVA Subordinated Capital or similar
procedure and shall be held by the applicable trustee in trust to apply the same:
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(i)
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first, in payment or satisfaction of the costs, charges, expenses and liabilities
incurred by the applicable trustee in or about the execution of the trusts of these
presents and any unpaid remuneration of such trustee;
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(ii)
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second, in payment or satisfaction of claims related to Issuer Senior Indebtedness that
have been belatedly or inaccurately communicated to the insolvency administrator or which,
by administrative order or decision, are deemed to be included in those claims that have
been belatedly or inaccurately communicated to the insolvency administrator;
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(iii)
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third, in payment or satisfaction of contractually subordinated payments of principal
on subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) of BBVA
Subordinated Capital (including any payments in respect of principal of the subordinated
notes) and any other payments in respect of subordinated credits (
créditos subordinados
)
(as defined in the Insolvency Law) of BBVA Subordinated Capital other than payments set
forth in paragraph (iv) below;
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(iv)
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fourth, in payment or satisfaction of payments of interest, including additional
amounts, if any, and interest, if any, on such interest due on subordinated credits
(
créditos subordinados
) (as defined in the Insolvency Law) of BBVA Subordinated Capital
(including any payments in respect of interest and additional amounts, if any, on the
subordinated notes) (excluding interest on secured indebtedness to the extent secured);
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(v)
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fifth, in payment or satisfaction of fines or any other monetary penalties or
sanctions;
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(vi)
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sixth, in payment or satisfaction of claims of creditors which are related to the BBVA
Subordinated Capital as set forth in article 93 of the Insolvency Law;
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(vii)
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seventh, in payment or satisfaction of indebtedness arising from transactions set
aside by the Spanish court overseeing the insolvency proceeding (
rescisión concursal
) and
in respect of which such court has determined that the relevant creditor has acted in bad
faith; and
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(viii)
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eighth, in payment of claims arising from contracts with reciprocal obligations as
referred to in articles 61, 62 and 69 of the Insolvency Law, wherever the court rules,
prior to the administrators report of insolvency (
administración concursal
) that the
creditor repeatedly impedes the fulfillment of the contract against the interest of the
insolvency.
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The consolidation of BBVA Subordinated Capital with, or the merger of BBVA Subordinated
Capital into, or the conveyance, transfer or lease by BBVA Subordinated Capital of its properties
and assets substantially as an entirety to, another person upon the terms and conditions set forth
in the subordinated indenture, or the liquidation or dissolution of BBVA Subordinated Capital
following any such conveyance or transfer, shall not be deemed an event of insolvency (
concurso
)
(under the Insolvency Law) or the voluntary or mandatory liquidation or similar procedure of BBVA
Subordinated Capital for the purposes of the description above if the person formed by such
consolidation or into which BBVA Subordinated Capital is merged or the person that acquires by
conveyance, transfer or lease of such properties and assets substantially as an entirety, as the
case may be, shall, as a part of such consolidation, merger, conveyance, transfer or lease, comply
with the conditions set forth in the subordinated indenture.
44
Nothing contained in the subordinated indenture or in any of the subordinated notes will
affect the obligation of BBVA Subordinated Capital to make, or prevent BBVA Subordinated Capital
from making, at any time except as provided above, payments of principal of (or premium, if any) or
interest, if any, on the subordinated notes or on account of the purchase or other acquisition of
subordinated notes or prevent the application by the applicable trustee of any moneys deposited
with it under the subordinated indenture to the payment of or on account of the principal of (or
premium, if any) or interest, if any, on the subordinated notes, unless such trustee shall have
received written notice of any event prohibiting the making of such payment.
Any renewal or extension of the time of payment of any Issuer Senior Indebtedness or the
exercise by the holders of Issuer Senior Indebtedness of any of their rights under any instrument
creating or evidencing Issuer Senior Indebtedness, including, without limitation, the waiver of
default thereunder, may be made or done all without notice to or assent from the holders of the
subordinated notes or the applicable trustee.
No compromise, alteration, amendment, modification, extension, renewal or other change of, or
waiver, consent or other action in respect of, any liability or obligation under or in respect of,
or of any of the terms, covenants or conditions of any indenture or other instrument under which
any Issuer Senior Indebtedness is outstanding or of such Issuer Senior Indebtedness, whether or not
such release is in accordance with the provisions of any applicable document, will in any way alter
or affect any of the subordination provisions of the subordinated indenture or of the subordinated
notes relating to the subordination thereof.
Each holder of subordinated notes by his or her acceptance thereof authorizes and directs the
applicable trustee on his or her behalf to take such action as may be necessary or appropriate to
effectuate the subordination of the subordinated notes as provided in the subordinated indenture
and as summarized herein and appoints the applicable trustee his attorney-in-fact for any and all
such purposes.
The applicable trustees claims under the subordinated indenture are not subordinated.
Subordination of Subordinated Guarantees
The payment of principal and interest or any other amounts as specified in the applicable
prospectus supplement and in the subordinated indenture in respect of the subordinated notes has
been fully, irrevocably and unconditionally guaranteed, on a subordinated basis, by the Guarantor
pursuant to the subordinated guarantees. The obligations of the Guarantor under the subordinated
guarantees constitute direct, unsecured and subordinated obligations of the Guarantor. In the event
of insolvency (
concurso
) of the Guarantor under the Insolvency Law or any voluntary or mandatory
Guarantor liquidation or similar procedure, claims by holders of subordinated guarantees against
the Guarantor will fall within the category of subordinated credits (
créditos subordinados
) (as
defined in the Insolvency Law) and will rank in right of payment after Guarantor Senior
Indebtedness and will at all times rank
pari passu
among themselves and
pari passu
with all other
present and future subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law)
of the Guarantor, except for certain subordinated obligations prescribed by law and subordinated
obligations which are expressed to rank junior to the subordinated guarantees. Accordingly, no
amount shall be payable by the Guarantor to the Holders in respect of the subordinated guarantees
until the claims with respect to all Guarantor Senior Indebtedness admitted in the insolvency
(
concurso
) of the Guarantor under the Insolvency Law or any voluntary or mandatory Guarantor
liquidation or similar procedure have been satisfied pursuant to the laws of Spain.
After payment in full of all Guarantor Senior Indebtedness but before distributions to
shareholders, under article 92 of the Insolvency Law, the Guarantor will pay or satisfy
subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) of the Guarantor in
the following order and
pro rata
within each class: (i) claims related to Guarantor Senior
Indebtedness that have been belatedly or inaccurately communicated to the insolvency administrator
or which, by administrative order or decision, are deemed to be included in those claims that have
been belatedly or inaccurately communicated to the insolvency administrator; (ii) contractually
subordinated payments of principal on subordinated credits (
créditos subordinados
) (as defined in
the Insolvency Law) of the Guarantor (including any payments in respect of principal of the
subordinated notes due under the subordinated guarantees) and any other payments in respect of
subordinated credits (
créditos subordinados
) (as defined in the Insolvency Law) of the Guarantor
other than payments set forth in subparagraph (iii) of this paragraph; (iii) payments of interest,
including additional amounts, if any, and interest, if any, on such interest due on subordinated
45
credits (
créditos subordinados
) (as defined in the Insolvency Law) of the Guarantor (including
any payments in respect of interest and Additional Amounts, if any, on the subordinated notes due
under the subordinated guarantees) (excluding interest on secured indebtedness to the extent
secured); (iv) fines or any other monetary penalties or sanctions; (v) claims of creditors which
are related to the Guarantor as set forth in article 93 of the Insolvency Law; and (vi)
indebtedness arising from transactions set aside by the Spanish court overseeing the insolvency
proceeding (
rescisión concursal
) and in respect of which such court has determined that the
relevant creditor has acted in bad faith.
The Guarantor in the subordinated guarantees agrees and each holder of subordinated notes, by
his or her acceptance of a subordinated notes guarantee will be deemed to have agreed to the above
described subordination of the subordinated guarantee. Each such holder will be deemed to have
irrevocably waived his or her rights of priority which would otherwise be accorded to him or her
under the laws of Spain, to the extent necessary to effectuate the subordination provisions of the
subordinated guarantee. In addition, each holder of subordinated notes by his or her acceptance
thereof authorizes and directs the applicable trustee on his or her behalf to take such action as
may be necessary or appropriate to effectuate the subordination of the subordinated guarantees as
provided in subordinated indenture and as summarized herein and appoints the applicable trustee his
attorney-in-fact for any and all such purposes.
Any renewal or extension of the time of payment of any Guarantor Senior Indebtedness or the
exercise by the holders of Guarantor Senior Indebtedness of any of their rights under any
instrument creating or evidencing Guarantor Senior Indebtedness, including, without limitation, the
waiver of default thereunder, may be made or done all without notice to or assent from the holders
of the subordinated notes or the applicable trustee.
No compromise, alteration, amendment, modification, extension, renewal or other change of, or
waiver, consent or other action in respect of, any liability or obligation under or in respect of,
or of any of the terms, covenants or conditions of any indenture or other instrument under which
any Guarantor Senior Indebtedness is outstanding or of such Guarantor Senior Indebtedness, whether
or not such release is in accordance with the provisions of any applicable document, will in any
way alter or affect any of the subordination provisions of the subordinated indenture or of the
subordinated notes relating to the subordination thereof.
Events of Default
Event of Default, wherever used below with respect to subordinated notes of any series,
means any one of the following events, unless such event is specifically deleted or modified in or
pursuant to supplemental indentures or Board resolutions creating a particular series of
subordinated notes or in the officers certificate for such series:
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an order of any competent court or administrative agency is made or any resolution is
passed by BBVA Subordinated Capital for the winding-up or dissolution of BBVA Subordinated
Capital (other than for the purpose of an amalgamation, merger or reconstruction approved
by an Act (as defined in the subordinated indenture) of the holders relating to such
series);
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an order is made by any competent court commencing insolvency proceedings
(
procedimientos concursales
) against the Guarantor or an order is made or a resolution is
passed for the dissolution or winding up of the Guarantor, except in any such case for the
purpose of a reconstruction or a merger or amalgamation which has been approved by an Act
(as defined in the subordinated indenture) of the holders relating to such series, or where
the entity resulting from any such reconstruction or merger or amalgamation is a financial
institution (
entidad de crédito
according to article 1-2 of
Real Decreto Legislativo
1298/1986 dated 28 June 1986, as amended and restated) and will have a rating for long-term
senior debt assigned by Standard & Poors Ratings Services, Moodys Investors Service or
Fitch Ratings Ltd equivalent to or higher than the rating for long-term senior debt of the
Guarantor immediately prior to such reconstruction or merger or amalgamation; or
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any other Event of Default that may be specified pursuant to the subordinated indenture.
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If an Event of Default with respect to the subordinated notes of any series at the time
outstanding occurs and is continuing, then the applicable trustee, acting pursuant to an Act (as
defined in the subordinated indenture) of the
46
holders of the subordinated notes of the relevant series, with respect to all outstanding
subordinated notes of such series, or the holder of any outstanding subordinated note of the
relevant series, with respect to such subordinated note held by such holder, may declare the
principal, or such lesser amount as may be provided for in the subordinated notes of such series,
of such subordinated notes or subordinated notes, as the case may be, to be due and payable
immediately in accordance with the terms of the subordinated indenture.
At any time after such a declaration of acceleration with respect to the subordinated notes or
a subordinated note, as the case may be, of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the applicable trustee as provided in the
subordinated indenture, the holders of not less than a majority in principal amount of the
outstanding subordinated notes of such series may, by Act (as defined in the subordinated
indenture), rescind and annul such declaration and its consequences if:
1. BBVA Subordinated Capital or the Guarantor has paid or deposited with the applicable
trustee a sum of money sufficient to pay:
(A) all overdue installments of any interest on and additional amounts with respect
to all subordinated notes of such series;
(B) the principal of and any premium on any subordinated notes of such series which
have become due otherwise than by such declaration of acceleration and interest thereon
and any additional amounts with respect thereto at the rate or rates borne by or
provided for in such subordinated notes;
(C) to the extent that payment of such interest or additional amounts is lawful,
interest upon overdue installments of any interest and additional amounts at the rate
or rates borne by or provided for in such subordinated notes; and
(D) all sums paid or advanced by the applicable trustee and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and all other amounts due to the applicable trustee under the subordinated
indenture; and
2. all Events of Default with respect to subordinated notes of such series, other than the
non-payment of the principal of and any premium and interest on, and any additional amounts
with respect to subordinated notes of such series which shall have become due solely by
such declaration of acceleration, shall have been cured or waived as provided in the
subordinated indenture.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
Subject to payment of the applicable trustees fees and expenses, the holders of not less than
a majority in principal amount of the outstanding subordinated notes of any series on behalf of the
holders of all the subordinated notes of such series may, by Act (as defined in the subordinated
indenture), waive any past Event of Default under the subordinated indenture with respect to such
series and its consequences, except a default in the payment of the principal of or any premium, or
interest on, or any additional amounts with respect to, any subordinated note of such series or in
respect of a covenant or provision of the subordinated indenture that cannot be modified or amended
without the consent of the holder of each outstanding subordinated note of such series affected.
No holder of any of the subordinated notes of any series has the right to institute any
proceeding, judicial or otherwise, with respect to the subordinated indenture or any remedy
thereunder, unless (i) such holder has previously given written notice to the applicable trustee of
a continuing Event of Default with respect to the subordinated notes of such series; (ii) the
holders of not less than 25% in principal amount of the outstanding subordinated notes of such
series have made written request to the applicable trustee to institute proceedings in respect of
such Event of Default as trustee under the subordinated indenture with respect to such series of
subordinated notes and such holder or holders have offered to the applicable trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in compliance with such
request; (iii) the applicable trustee has failed to institute any such proceeding within 60 days
after its receipt of such notice, request and offer of indemnity; and (iv) the applicable trustee
has not received any direction inconsistent with such written request during such 60-day period by
the holders of a majority in principal amount of the outstanding subordinated notes of such series.
47
Such limitations described above do not, however, apply to the right of each holder, which is
absolute and unconditional, to receive payment of the principal of, any premium and, subject to
certain provisions in the subordinated indenture with respect to payment of defaulted interest,
interest on, and any additional amounts with respect to, his or her subordinated note or notes on
or after the respective maturity or maturities therefor specified in such subordinated notes (or,
in the case of redemption, on or after the redemption date or, in the case of repayment at the
option of such holder if provided in or pursuant to the applicable subordinated indenture, on or
after the date such repayment is due) and to institute suit for the enforcement of any such
payment, which cannot be impaired or affected without the consent of such holder, except that
holders of not less than 75% in principal amount of outstanding subordinated notes of a series may
consent by Act (as defined in the subordinated indenture), on behalf of the holders of all
outstanding subordinated notes of such series, to the postponement of the maturity of any
installment of interest for a period not exceeding three years from the original maturity of such
installment (which original maturity shall have been fixed, for the avoidance of doubt, prior to
any previous postponements of such installment).
Within 90 days after the occurrence of any default under the subordinated indenture known to
the applicable trustee with respect to the subordinated notes of any series, such trustee shall
transmit by mail to all holders of subordinated notes of such series entitled to receive reports,
notice of such default, unless such default shall have been cured or waived. Except in the case of
a default in the payment of the principal of (or premium, if any), or interest, if any, on, or
additional amounts with respect to, any subordinated note of such series, such trustee may withhold
such notice if and so long as the board of directors, the executive committee or a trust committee
of directors and/or responsible officers of such trustee in good faith determine that the
withholding of such notice is in the best interest of the holders of subordinated notes of such
series. For the purpose of this paragraph, the term default means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect to subordinated
notes of such series.
Subrogation
Holders of the subordinated notes will have no rights of subrogation in respect of any
payments or distributions made to holders of any Issuer Senior Indebtedness as a result of the
subordination provisions of the subordinated notes.
Perpetual Subordinated Debt
Neither BBVA U.S. Senior nor BBVA Subordinated Capital may issue subordinated notes that do
not have a stated maturity or which may otherwise be treated as equity for U.S. federal income tax
purposes.
48
SPANISH TAX CONSIDERATIONS
The following is a summary of the material Spanish tax consequences of the acquisition,
ownership and disposition of BBVA ordinary shares, ADSs, BBVA U.S. Senior notes and BBVA
Subordinated Capital subordinated notes by U.S. Residents (as defined below). This summary is not a
complete analysis or listing of all the possible tax consequences of such transactions and does not
address all tax considerations that may be relevant to all categories of potential purchasers, some
of whom may be subject to special rules. In particular, this tax section does not address the
Spanish tax consequences applicable to look-through entities (such as trusts or estates) that may
be subject to the tax regime applicable to such non-Spanish entities under the Spanish Non-Resident
Income Tax Law.
Accordingly, prospective investors should consult their own tax advisors as to the tax
consequences of their purchase, ownership and disposition of BBVA ordinary shares or ADSs, BBVA
U.S. Senior senior notes and BBVA Subordinated Capital subordinated notes including the effect of
tax laws of any other jurisdiction, based on their particular circumstances.
As used herein, the following terms have the following meanings:
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(i)
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The Treaty means the Convention between the United States and Spain for the avoidance
of double taxation and the prevention of fiscal evasion with respect to taxes on income,
together with the related Protocol, both signed February 22, 1990.
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(ii)
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A U.S. Resident means a U.S. Holder (as defined below under U.S. Tax
Considerations) that is a resident of the United States for purposes of the Treaty and
entitled to the benefits of the Treaty and whose holding is not effectively connected with
a permanent establishment (as defined by the Treaty) in Spain through which such holder
carries on or has carried on business or with a fixed base in Spain from which such holder
performs or has performed independent personal services.
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For purposes of Spanish law and the Treaty, an owner of BBVA ADSs will generally be treated as
the owner of the BBVA ordinary shares underlying the ADSs. Holders of BBVA ordinary shares, or
ADSs, BBVA U.S. Senior senior notes or BBVA Subordinated Capital subordinated notes who are not
U.S. Residents should consult their own tax advisors, particularly as to the applicability of any
Double Tax Treaty referred to as a DTT.
The statements regarding Spanish tax laws set out below are based on interpretations of those
laws as in force on the date of this document and are subject to any change in such law that may
take effect after such date. Such statements also assume that each obligation in the deposit
agreement and any related agreement will be performed in full accordance with their terms.
BBVA Ordinary Shares or ADSs
1.
Taxation of Dividends
Under Spanish law, dividends paid by a Spanish resident company to a non-Spanish resident
holder of BBVA ordinary shares or ADSs are subject to the Spanish Non-Resident Income Tax, referred
to as the NRIT, approved by Royal Decree Legislative 5/2004 of March 5, (
NRIT Law
), and
therefore a 19% withholding tax is currently applied on the gross amount of dividends.
However, under the Treaty, a U.S. Resident is entitled to the Treaty-reduced rate of 15%, as a
general rule, or 10% if the U.S. Resident is a corporation which owns more than 25% of the voting
rights of the ordinary shares of BBVA.
In practice, on any dividend payment date, U.S. Residents will be subject to a withholding of
19% of the gross amount of dividends. However, U.S. Residents will be entitled to a refund of the
amount withheld in excess of the Treaty-reduced rate, according to the procedure set forth by the
Spanish legislation. To benefit from the Treaty reduced rate, a U.S. Resident must provide to BBVA
or to the Spanish resident depositary, if any, through which its ordinary shares are held, a
certificate from the U.S. Internal Revenue Service (IRS) on Form 6166 stating that, to its best
knowledge, such holder is a U.S. Resident within the meaning of the Treaty. The IRS certificate of
residence
49
is valid for a period of one year from the date of issuance. The issuance of Form 6166 by the
IRS may be subject to substantial delay.
The Bank of New York Mellon, unless otherwise indicated in the applicable prospectus
supplement, has arranged a procedure by which a holder of BBVA ADSs may receive both the dividend
payment (net of the withholding of 19% of the gross amount of dividends) and the tax relief of 4%
under the Treaty on the same dividend payment date by following the procedures specified by the
Bank of New York Mellon. Holders of BBVA ADSs who do not receive their refund through The Bank of
New York Mellon may use the Quick Refund process described below to receive the refund the next
month after the dividend record date. See Quick Refund Process.
Notwithstanding the above, according to the NRIT Law, individuals with tax residency in an EU
country or in other countries with which there is an actual exchange of tax information, pursuant
to Additional Provision no. 1 of Law 36/2006, of November 29, 2006 (including the US) may benefit
from a NRIT exemption up to an annual amount of 1,500 on their Spanish sourced dividend income.
For the purposes of applying this exemption, BBVA has to deduct withholding taxes on the gross
amount of dividends paid and the holders entitled to this exemption will have to seek a refund of
such withholding taxes from the Spanish Tax Authorities.
Quick Refund Process
Under the standard procedure agreed to between The Bank of New York Mellon and its Spanish
resident depositary, unless otherwise indicated in the applicable prospectus supplement, holders of
BBVA ADSs claiming tax relief through the Quick Refund process must submit their valid IRS
certificate of residence by the last day of the month in which the record date for receipt of the
relevant dividend occurs.
The IRS certificate of residence will then be provided to the Spanish depositary before the
fifth day following the end of the month in which the dividend record date occurs. Otherwise, the
U.S. Resident may afterwards obtain a refund of the amount withheld in excess of the Treaty-reduced
rate, directly from the Spanish tax authorities, following the standard refund procedure
established by Spanish regulations. See Spanish Refund Procedure below.
Spanish Refund Procedure
According to Spanish regulations on the NRIT, approved by Royal Decree 1776/2004, dated July
30, 2004, a refund for the amount withheld in excess of the Treaty-reduced rate can be obtained
from the relevant Spanish tax authorities. To pursue the refund claim, the U.S. Resident is
required to file:
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The corresponding Spanish tax form (currently, Form 210);
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The IRS certificate of residence referred to above under Taxation of Dividends; and
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A certificate evidencing Spanish Non-Resident Income Tax withheld regarding the
dividends, which may generally be obtained from the U.S. residents broker.
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2.
Taxation of Capital Gains
Capital gains realized by U.S. Residents from the disposition of BBVA ordinary shares or ADSs
will not be taxed in Spain, if (i) the seller has not maintained a direct or indirect holding of at
least 25% of the BBVA ordinary shares outstanding during the twelve months preceding the
disposition of the shares, and (ii) the gain is not obtained through a country or territory defined
as a tax haven under applicable Spanish regulations.
Additionally, capital gains derived from the transfer of BBVA ordinary shares in an official
Spanish secondary stock market by any holder who is resident in a country that has entered into a
DTT with Spain containing an exchange of information clause (including the Treaty), will be exempt
from taxation in Spain. This exemption is not applicable to capital gains obtained by a U.S.
Resident through a country or territory defined as a tax haven under applicable Spanish
regulations.
50
Where the abovementioned exemption applies, the seller will be obliged to file with the
Spanish tax authorities the corresponding tax Form 210 together with the certificate of tax
residence issued by the tax authorities of the country of residence, within the meaning of a DTT,
evidencing its entitlement to the exemption. In the case of U.S. Residents, it will be necessary to
provide to the Spanish tax authorities an IRS certificate of United States residence on IRS Form
6166.
3.
Spanish Wealth Tax
Law 4/2008 has amended Law 19/1991 introducing a credit of 100% over the tax due and removing
the obligation to file Wealth Tax declarations from January 1, 2008.
4.
Spanish Inheritance and Gift Taxes
Unless otherwise provided under an applicable DTT (and the United States and Spain have not
entered into such DTT), transfers of BBVA ordinary shares upon death or by gift to individuals not
resident in Spain are subject to Spanish Inheritance and Gift Tax (Law 29/1987), if the BBVA
ordinary shares or ADSs are located in Spain or the rights attached to such ordinary shares or ADSs
are exercisable in Spain, regardless of the residence of the heir or the beneficiary. In this
regard, the Spanish tax authorities may argue that all BBVA ordinary shares and all ADSs are
located in Spain for Spanish tax purposes. If such a view were to prevail, non-resident holders in
Spain who inherit or receive a gift of BBVA ordinary shares or ADSs would be subject to tax at an
effective tax rate that depends on all relevant factors and that ranges between 0% and 81.6% for
individuals. Gifts granted to non-Spanish resident corporations will be generally subject to
Spanish NRIT as capital gains, subject to the exemptions referred to above under section
Taxation of Capital Gains.
5.
Spanish Transfer Tax
Transfers of BBVA ordinary shares or ADSs will be exempt from Spanish transfer tax or
value-added tax. Additionally, no Spanish Stamp Duty will be levied on the subscription for,
acquisition of or transfer of BBVA ordinary shares or ADSs.
Preferred Securities and BBVA Rights to Subscribe for Ordinary Shares
The material Spanish tax consequences of the acquisition, ownership and disposition of
Preferred Securities or rights to subscribe for BBVA shares will be described in the applicable
prospectus supplement.
Senior Notes and Subordinated Notes
References in this section to holders of senior notes or subordinated notes, as the case may
be (hereinafter, the relevant securities) include the owners of a beneficial interest in the
relevant securities, or beneficial owners, of the relevant securities. The statements regarding
Spanish law and practice set forth below assume that the relevant securities will be issued, and
transfers thereof will be made, in accordance with the Spanish law.
Introduction
This information has been prepared in accordance with the following Spanish tax legislation in
force at the date of this prospectus and is subject to amendment in subsequent prospectus
supplements:
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(a)
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of general application, Second Additional Provision of Law 13/1985, of May 25 on
investment ratios, own funds and information obligations of financial intermediaries.
Consideration has also been given to Royal Decree 1065/2007, of July 27;
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(b)
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for individuals resident for tax purposes in Spain which are subject to the Individual
Income Tax (IIT), Law 35/2006 of November 28, on the IIT and on the Partial Amendment of
the Corporate Income Tax Law, the Non-Residents Income Tax Law and the Net Wealth Tax Law,
and Royal Decree 439/2007, of March 30 promulgating the IIT Regulations, along with Law
29/1987, of December 18 on Inheritance and Gift Tax;
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51
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(c)
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for legal entities resident for tax purposes in Spain which are subject to the
Corporate Income Tax (CIT), Royal Legislative Decree 4/2004, of March 5 promulgating the
Consolidated Text of the CIT Law, and Royal Decree 1777/2004, of July 30 promulgating the
CIT Regulations; and
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(d)
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for individuals and entities who are not resident for tax purposes in Spain which are
subject to (NRIT), and Royal Decree 1776/2004, of July 30 promulgating the NRIT
Regulations, along with Law 29/1987, of December 18 on Inheritance and Gift Tax.
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Whatever the nature and residence of the holders of relevant securities, the acquisition and
transfer of the relevant securities will be exempt from indirect taxes in Spain, i.e., exempt from
Transfer Tax and Stamp Duty, in accordance with the Consolidated Text of such tax promulgated by
Royal Legislative Decree 1/1993, of September 24 and exempt from Value Added Tax, in accordance
with Law 37/1992, of December 28 regulating such tax.
1.
Tax Rules for Senior Notes and Subordinated Notes Listed on an Organized Market in an OECD Country
The following summary assumes that the relevant securities will be listed on an organized
market in an OECD country.
1(a).
Individuals with Tax Residency in Spain
Individual Income Tax
(Impuesto sobre la Renta de las Personas Físicas)
Both distributions and interest periodically received and income derived from the transfer,
redemption or repayment of the relevant securities constitute a return on investment obtained from
the transfer of a persons own capital to third parties in accordance with the provisions of
Section 25.2 of the IIT Law, and must be included in the investors IIT savings taxable base and
taxed at a flat rate of 21% (except the first 6.000 euros of income that will be taxed at the rate
of 19% ).
Both types of income are subject to a withholding on account of IIT at the rate of 19%. The
individual holder may credit the withholding against his or her final IIT liability for the
relevant tax year.
Net Wealth Tax
(Impuesto sobe el Patrimonio)
Law 4/2008 has amended Law 19/1991 introducing a credit of 100% over the tax due and removing
the obligation to file Wealth Tax declarations from January 1, 2008.
Inheritance and Gift Tax (
Impuesto sobre Sucesiones y Donaciones
)
Individuals resident in Spain for tax purposes who acquire ownership or other rights over any
relevant securities by inheritance, gift or legacy will be subject to the Spanish Inheritance and
Gift Tax in accordance with the applicable Spanish regional and State rules. The effective tax
rates currently range between 0% and 81.6%, depending on relevant factors.
1(b).
Legal Entities with Tax Residency in Spain
Corporate Income Tax (
Impuesto sobre Sociedades
)
Both distributions periodically received and income derived from the transfer, redemption or
repayment of the relevant securities are subject to CIT (at the current general tax rate of 30%) in
accordance with the rules for this tax.
In accordance with Section 59.s) of the CIT Regulations, there is no obligation to withhold on
income payable to Spanish CIT taxpayers (which for the sake of clarity, include Spanish tax
resident investment funds and Spanish tax resident pension funds) from financial assets traded on
organized markets in OECD countries.
The Directorate General for Taxation (
Dirección General de Tributos
DGT
), on July 27,
2004, issued a tax ruling indicating that in the case of issues made by entities resident in Spain,
as in the case of BBVA U.S. Senior and BBVA Subordinated Capital, application of the exemption
requires that the relevant securities be placed and
52
traded on an organized market in an OECD country other than Spain. Unless otherwise indicated
in the applicable prospectus supplement, the relevant subsidiary issuer considers that the issue of
such securities will fall within this exemption as the relevant securities are to be sold outside
Spain and in the international capital markets and none of the entities initially placing the
senior notes or subordinated notes is resident in Spain. Consequently, the relevant subsidiary
issuer, will not withhold on distributions to Spanish CIT taxpayers that provide relevant
information to qualify as such. If the Spanish tax authorities maintain a different opinion on this
matter, however, BBVA U.S. Senior or BBVA Subordinated Capital, as the case may be, will be bound
by that opinion and, with immediate effect, will make the appropriate withholding and the relevant
subsidiary issuer and the Guarantor will not, as a result, pay additional amounts.
In order to implement the exemption from withholding, the procedures laid down in the Order of
December 22, 1999 will be followed. No reduction percentage will be applied. See Evidencing of
Beneficial Owner Residency in Connection with Distributions.
Net Wealth Tax (
Impuesto sobre el Patrimonio
)
Law 4/2008 has amended Law 19/1991 introducing a credit of 100% over the tax due and removing
the obligation to file Wealth Tax declarations from January 1, 2008.
Inheritance and Gift Tax (
Impuesto sobre Sucesiones y Donaciones
)
Legal entities resident in Spain for tax purposes (and NRIT taxpayers acting through a
permanent establishment in Spain, as described below) which acquire ownership or other rights over
the relevant securities by inheritance, gift or legacy are not subject to the Spanish Inheritance
and Gift Tax.
1(c).
Individuals and Legal Entities with no Tax Residency in Spain
Non-Resident Income Tax (
Impuesto sobre la Renta de no Residentes
)
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(a)
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Investors with no Tax Residency in Spain acting through a permanent establishment in
Spain
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If the relevant securities form part of the assets of a permanent establishment in Spain of
a person or legal entity who is not resident in Spain for tax purposes, the tax rules
applicable to income deriving from such securities are, generally, the same as those
previously set out for Spanish CIT taxpayers. See Legal Entities with Tax Residency in
SpainCorporate Income Tax (
Impuesto sobre Sociedades
). Ownership of the senior notes or
subordinated notes by investors who are not resident for tax purposes in Spain will not in
itself create the existence of a permanent establishment in Spain.
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(b)
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Investors with no Tax Residency in Spain not acting through a permanent establishment
in Spain
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Both distributions periodically received and income derived from the transfer, redemption or
repayment of the senior notes or subordinated notes, as the case may be, obtained by
individuals or entities who are not resident in Spain for tax purposes and who do not act,
with respect to those securities, through a permanent establishment in Spain, are exempt
from NRIT.
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In order to be eligible for the exemption from NRIT, it is necessary to comply with certain
information obligations relating to the identity and residence of the beneficial owners
entitled to receive distributions on the relevant securities, in the manner detailed below
under Evidencing of Beneficial Owner Residency in Connection with Distributions. In
this respect, although Law 4/2008 of 23 December, abolishing the Wealth Tax levy,
generalizing the Value Added Tax monthly refund system and introducing other amendments to
the tax legal system (Law 4/2008), modified the regime on information reporting
obligations, established by Second Additional Provision of Law 13/1985, the Spanish General
Directorate for Taxation is of the view (as expressed in binding rulings V0077-09 and
V0078-09 issued on January 20, 2009) that, in order to benefit from withholding tax
exemption on interest payments in respect of the notes, non-Spanish tax residents must
continue to fulfill the information reporting procedures established under Section 44 of the
Spanish Royal Decree 1065/2007 (Section 44).
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53
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If these information obligations are not complied with in the manner indicated, the relevant
subsidiary issuer or the guarantor, as the case may be, will withhold 19% and, as a result,
will not pay any additional amounts.
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Beneficial owners not resident in Spain for tax purposes and entitled to exemption from NRIT
who do not timely provide evidence of their tax residency in accordance with the procedure
described in detail below, may obtain a refund of the amount withheld from BBVA U.S. Senior
or BBVA Subordinated Capital, as the case may be, by following a quick refund procedure or,
otherwise, directly from the Spanish tax authorities by following the standard refund
procedure described below under Evidencing of Beneficial Owner Residency in Connection
with Distributions. Beneficial owners are advised to consult their own tax advisers
regarding their eligibility to claim a refund from the Spanish tax authorities and the
procedures to be followed in such circumstances.
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Inheritance and Gift Tax (
Impuesto sobre Sucesiones y Donaciones
)
Individuals not resident in Spain for tax purposes who acquire ownership or other rights over
senior notes or subordinated notes by inheritance, gift or legacy, will be subject to the Spanish
Inheritance and Gift Tax in accordance with the applicable Spanish regional and state rules, unless
they reside in a country for tax purposes with which Spain has entered into a double tax treaty in
relation to Inheritance Tax. In such case, the provisions of the relevant double tax treaty will
apply. The United States and Spain have not entered into a double tax treaty in relation to
inheritance or gift taxes.
Non-Spanish resident legal entities which acquire ownership or other rights over the relevant
securities by inheritance, gift or legacy are not subject to the Spanish Inheritance and Gift Tax.
Such acquisitions will be subject to NRIT (as described above), subject to the provisions of any
applicable double tax treaty entered into by Spain. In general, double tax treaties provide for the
taxation of this type of income in the country of residence of the beneficiary.
2.
Tax Rules for Senior Notes and Subordinated Notes not Listed on an Organized Market in an OECD Country
2(a).
Withholding on Account of IIT, CIT and NRIT
If the senior notes or subordinated notes are not listed on an organized market in an OECD
country on any payment date, interest payments to beneficial owners in respect of such securities
not listed on an organized market in an OECD country will be subject to withholding tax, currently
at a rate of 19%, except if an exemption from Spanish tax or a reduced withholding tax rate is
provided by an applicable convention for the avoidance of double taxation entered into between
Spain and the country of residence of the relevant beneficial owner. The treaty generally provides
for a withholding rate of 10% for U.S. Residents. Individuals and entities that may benefit from
such exemptions or reduced tax rates would have to follow either the Quick Refund Procedures
or the Direct Refund Procedure described below under Evidencing of Beneficial Owner
Residency in Connection with Distributions in order to obtain a refund of the amounts withheld.
2(b).
Net Wealth Tax (Impuesto sobre el Patrimonio)
Law 4/2008 has amended Law 19/1991 introducing a credit of 100% over the tax due and removing
the obligation to file Wealth Tax declarations from January 1, 2008.
2(c).
Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones)
Individuals resident in Spain for tax purposes who acquire ownership or other rights over any
relevant securities by inheritance, gift or legacy will be subject to the Spanish Inheritance and
Gift Tax in accordance with the applicable Spanish regional and State rules. The effective tax
rates currently range between 0% and 81.6%, depending on relevant factors.
54
Individuals not resident in Spain for tax purposes who acquire ownership or other rights over
senior notes or subordinated notes by inheritance, gift or legacy, will be subject to the Spanish
Inheritance and Gift Tax in accordance with the applicable Spanish regional and state rules, unless
they reside in a country for tax purposes with which Spain has entered into a double tax treaty in
relation to Inheritance Tax. In such case, the provisions of the relevant double tax treaty will
apply. The United States and Spain have not entered into a double tax treaty in relation to
Inheritance Tax.
Legal entities resident in Spain for tax purposes (and NRIT taxpayers acting through a
permanent establishment in Spain) which acquire ownership or other rights over the relevant
securities by inheritance, gift or legacy are not subject to the Spanish Inheritance and Gift Tax.
Non-Spanish resident legal entities which acquire ownership or other rights over the relevant
securities by inheritance, gift or legacy are not subject to the Spanish Inheritance and Gift Tax.
Such acquisitions will be subject to NRIT (as described above), subject to the provisions of any
applicable double tax treaty entered into by Spain. In general, double tax treaties provide for the
taxation of this type of income in the country of residence of the beneficiary.
3.
Evidencing of Beneficial Owner Residency in Connection with Distributions
As described under Tax Rules for Senior Notes and Subordinated Notes Listed on an Organized
Market in an OECD CountryIndividuals and Legal Entities with no Tax Residency in Spain, interest
and other financial income paid with respect to the senior notes or subordinated notes, as the case
may be, for the benefit of non-Spanish resident investors not acting, with respect to such
securities, through a permanent establishment in Spain will be exempt from Spanish withholding tax.
Although Law 4/2008, modified the regime on information reporting obligations, the Spanish
General Directorate for Taxation is of the view (as expressed in binding rulings V0077-09 and
V0078-09 issued on January 20, 2009) that, in order to benefit from withholding tax exemption on
interest payments in respect of the senior notes or subordinated notes, as the case may be,
non-Spanish tax residents must continue to fulfill the information reporting procedures
established under Section 44 of the Spanish Royal Decree 1065/2007 (Section 44).
The following is a summary of the procedures that will have been arranged at the time of each
prospectus supplement with DTC and the European Clearing Systems to facilitate collection of the
relevant Noteholder information necessary to enable the Issuer to comply with its reporting
obligations pursuant to Additional Provision Two of Law 13/1985.
The procedure summarized below, which is subject to review and amendment by the fiscal agent, is
a summary of the procedures implemented by the fiscal agent with DTC and the European Clearing
Systems to facilitate collection of the relevant holder information necessary to enable the
Issuer to comply with its reporting obligations pursuant to Additional Provision Two of Law
13/1985 as well as to conform the procedures with further requirements of the Spanish tax
authorities. Holders must seek their own advice to ensure that they comply with all procedures
to ensure correct tax treatment of their senior notes or subordinated notes, as the case may be.
None of the underwriters, the paying agent, the Trustee, DTC and/or the European Clearing
Systems assumes any responsibility for any investment decision made by the noteholders.
Each holder is therefore deemed to be aware of the obligations set out below regarding the
disclosure of note holders identity and tax residence (as well as the identity and tax
residence of the beneficial owner for whose benefit it holds such note) and the consequences of
non-compliance. Specifically, holders are deemed to be aware of the application of Spanish
withholding tax if certain information is not provided in a timely manner.
55
Individuals and Legal Entities without tax residency in Spain
The information obligations to be complied with in order to apply the exemption are those set
forth in article 44 of the Spanish Royal Decree 1065/2007, being the following:
An annual return must be filed with the Spanish tax authorities, by the Guarantor, specifying
the following information with respect to the senior notes and subordinated notes, as the case may
be:
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(A)
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the identity and country of residence of the recipient of the income on such securities
(when the income is received on behalf of a third party (i.e., a beneficial owner), the
identity and country of residence of that third party);
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(B)
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the amount of income received; and
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(C)
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details identifying the relevant securities.
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For the purpose of preparing the annual return referred to in the paragraph above, certain
documentation regarding the identity and country of residence of the beneficial owners obtaining
income on the relevant securities must be submitted to the relevant subsidiary issuer and the Bank
on each relevant distribution payment date, as specified in the applicable prospectus supplement.
In addition to the above, as described under Tax Rules for Senior Notes and Subordinated
Notes Listed on an Organized Market in an OECD Country Legal Entities with Tax Residency in
SpainCorporate Income Tax (
Impuesto sobre Sociedades
), Spanish CIT taxpayers will not be subject
to withholding tax on income derived from the senior notes or subordinated notes, as the case may
be, provided that Qualified Institutions (as defined below) acting on behalf of such CIT taxpayers
provide relevant information to qualify as such on each relevant distribution payment date.
In light of the above, the relevant subsidiary issuer, the Guarantor, the paying agent (as
specified in the applicable prospectus supplement) and the relevant clearing organization will have
arranged at the time of each prospectus supplement, if relevant, certain procedures to facilitate
the collection and verification of information concerning the identity and country of residence of
beneficial owners (either non-Spanish resident or CIT taxpayers) holding through a Qualified
Institution (as defined below) on each relevant distribution payment date. The delivery of such
information, while the relevant securities are in global form, will be made through the relevant
direct or indirect participants in the relevant clearing organization. The relevant subsidiary
issuer will withhold at the then-applicable rate (currently 19%) from any distribution payment as
to which the required information has not been provided or the required procedures have not been
followed.
Each prospectus supplement will, if applicable, set forth procedures intended to identify
beneficial owners who are (i) corporations resident in Spain for tax purposes, or (ii) individuals
or legal entities not resident in Spain for tax purposes, that do not act with respect to the
senior notes or subordinated notes, as the case may be, through a permanent establishment in Spain.
These procedures are designed to facilitate the collection of certain information concerning
the identity and country of residence of the beneficial owners mentioned in the preceding paragraph
(who therefore are entitled to receive income in respect of the senior notes or subordinated notes,
as the case may be, free and clear of Spanish withholding taxes) who are participants in the
relevant clearing organization or hold their interests through participants in the relevant
clearing organization, provided in each case, that the relevant participant is a central bank,
other public institution, international organization, bank, credit institution or financial entity,
including collective investment institutions, pension fund or insurance entity, resident either in
an OECD country (including the United States) or in a country with which Spain has entered into a
double taxation treaty subject to a specific administrative registration or supervision scheme
(each, a Qualified Institution).
Beneficial owners who are entitled to receive income in respect of the senior notes or
subordinated notes, as the case may be, free of any Spanish withholding taxes but who do not hold
such securities through a Qualified Institution will have Spanish withholding tax withheld from
distribution payments and other financial income paid
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with respect to such securities at the then-applicable rate (currently 19%). Beneficial owners
who do not hold such securities through a Qualified Institution can follow alternative procedures,
including a direct request for a refund from the Spanish tax authorities. The applicable prospectus
supplement will contain a detailed description of these procedures, if relevant.
4.
Tax Rules for Payments Made by the Guarantor
Payments made by the Bank acting as guarantor to security holders will be treated as interest
for Spanish tax purposes and subject to the same tax rules previously set out for payments made by
BBVA U.S. Senior and BBVA Subordinated Capital.
5.
Tax Havens
Pursuant to Royal Decree 1080/1991, of July 5, as amended, the following are each considered
to be a tax haven:
British Virgin Islands,
Channel Islands (Jersey and Guernsey),
Cayman Islands,
Falkland Islands,
Fiji Islands,
Gibraltar,
Grenada,
Hashemite Kingdom of Jordan,
Hong-Kong,
Islands of Antigua and Barbuda,
Isle of Man,
Kingdom of Bahrain,
Macao,
Marianas Islands,
Mauritius
Montserrat,
Principality of Andorra,
Principality of Liechtenstein,
Principality of Monaco,
Republic of Cyprus,
Republic of Lebanon,
Republic of Liberia,
Republic of Nauru,
Republic of Panama,
Republic of San Marino,
Republic of Seychelles,
Republic of Singapore,
Kingdom of Vanuatu,
Saint Lucia,
Saint Vincent & the Grenadines,
Solomon Islands,
Sultanate of Brunei,
Sultanate of Oman,
The Bahamas,
The Bermuda Islands,
The Cook Islands,
The Island of Anguila,
The Island of Barbados,
The Republic of Dominica,
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Turks and Caicos Islands and
Virgin Islands (of the United States)
Countries and territories described above which have an agreement with Spain to exchange
information for tax purposes or who are signatories to a convention for the avoidance of double
taxation with an exchange of information clause will cease to be considered as a tax heaven for
Spanish tax purposes as of the entry into force of such agreement or convention.
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U.S. TAX CONSIDERATIONS
The following summary describes the material U.S. federal income tax consequences of the
acquisition, ownership and disposition of BBVA ADSs, BBVA ordinary shares, BBVA U.S. Senior senior
notes and BBVA Subordinated Capital subordinated notes but it does not purport to be a
comprehensive description of all of the tax considerations that may be relevant to a particular
persons decision to acquire such securities. The material U.S. federal income tax consequences of
the acquisition, ownership and disposition of rights to acquire ordinary shares, or of preferred
securities issued by BBVA International Preferred will be described in the applicable prospectus
supplement. The summary applies only to U.S. Holders described below that hold ordinary shares,
ADSs, senior notes or subordinated notes as capital assets for tax purposes and, in the case of
senior notes or subordinated notes, acquire such notes pursuant to the offering at the issue
price, which will equal the first price to the public, not including bond houses, brokers or
similar persons or organizations acting in the capacity of underwriters, placement agents or
wholesalers, at which a substantial amount of the notes is sold for money. This summary does not
address all of the tax consequences that may be relevant to holders subject to special rules, such
as:
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certain financial institutions;
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insurance companies;
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dealers and certain traders in securities or foreign currencies;
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persons holding ADSs, ordinary shares, senior notes or subordinated notes as part of a
hedge, straddle, conversion transaction or integrated transaction;
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persons whose functional currency for U.S. federal income tax purposes is not the U.S.
dollar;
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persons liable for the alternative minimum tax;
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tax-exempt organizations;
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partnerships or other entities classified as partnerships for U.S. federal income tax
purposes;
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persons who own or are deemed to own 10% or more of our voting shares; and
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persons holding ADSs, ordinary shares, senior notes or subordinated notes in connection
with a trade or business conducted outside the United States.
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A U.S. Holder is a beneficial owner of BBVA ordinary shares, ADSs, BBVA U.S. Senior senior
notes or BBVA Subordinated Capital subordinated notes, as applicable, who is eligible for benefits
of the Treaty (as defined in Spanish Tax Considerations above) and is, for U.S. federal income
tax purposes:
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a citizen or resident of the United States;
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a corporation, or other entity taxable as a corporation, created or organized in or
under the laws of the United States, any state therein or the District of Columbia; or
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an estate or trust the income of which is subject to U.S. federal income taxation
regardless of its source.
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If a partnership holds the ordinary shares, ADSs, senior notes or subordinated notes, the U.S.
federal income tax treatment of a partner will generally depend on the status of the partner and
the tax treatment of the partnership. Partnerships holding ordinary shares, ADSs, senior notes or
subordinated notes and partners in such partnerships should consult their tax advisors with regard
to the U.S. federal income tax treatment of their investment in such securities.
The summary is based upon the tax laws of the United States including the Internal Revenue
Code of 1986, as amended to the date hereof (the Code), administrative pronouncements, judicial
decisions and final, temporary and proposed Treasury regulations, all as of the date hereof. These
laws are subject to change, possibly with
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retroactive effect. In addition, the summary is based on the Treaty and, in the case of ADSs,
is based in part on representations of the depositary and assumes that each obligation provided for
in or otherwise contemplated by BBVAs deposit agreement or any other related document will be
performed in accordance with its terms. Prospective purchasers of the ADSs, ordinary shares, senior
notes or subordinated notes are urged to consult their tax advisors as to the U.S., Spanish or
other tax consequences of the purchase, ownership and disposition of such securities in their
particular circumstances, including the effect of any U.S. state or local tax laws. This discussion
is subject to any additional discussion regarding U.S. federal income taxation contained in the
applicable prospectus supplement. Accordingly, U.S. Holders should also consult the applicable
prospectus supplement for any additional discussion regarding U.S. federal income taxation with
respect to the specific securities offered thereunder.
BBVA ADSs or Ordinary Shares
For United States federal income tax purposes, U.S. Holders of ADSs will generally be treated
as the owners of the underlying ordinary shares represented by those ADSs. Accordingly, no gain or
loss will be recognized if a U.S. Holder exchanges ADSs for the underlying ordinary shares
represented by those ADSs and vice-versa.
The U.S. Treasury has expressed concerns that parties to whom depositary shares are
pre-released or intermediaries in the chain of ownership between U.S. holders and the issuer of the
security underlying the depositary share may be taking actions that are inconsistent with the
claiming of foreign tax credits for U.S. holders of depositary shares. Such actions would also be
inconsistent with the claiming of the reduced rate of tax applicable to dividends received by
certain noncorporate U.S. Holders, as described below. Accordingly, the analysis of the
creditability of Spanish taxes described below, and the availability of the reduced tax rate for
dividends received by certain noncorporate U.S. Holders, could be affected by future actions that
may be taken by the parties to whom the depositary shares are pre-released or such intermediaries.
This discussion assumes that BBVA is not, and will not become, a passive foreign investment
company (PFIC) for U.S. federal income tax purposes (as discussed below).
Taxation of Distributions
Distributions, before reduction for any Spanish income tax withheld by BBVA or its paying
agent, made with respect to ADSs or ordinary shares (other than certain
pro rata
distributions of
BBVAs capital stock or rights to subscribe for shares of its capital stock) will be includible in
the income of a U.S. Holder as ordinary dividend income, to the extent paid out of BBVAs current
or accumulated earnings and profits as determined in accordance with U.S. federal income tax
principles. Because BBVA does not maintain calculations of its earnings and profits under U.S.
federal income tax principles, it is expected that distributions generally will be reported to U.S.
Holders as dividends. The amount of such dividends will be treated as foreign-source dividend
income and will not be eligible for the dividends received deduction generally allowed to U.S.
corporations under the Code. Subject to applicable limitations and the discussion above regarding
concerns expressed by the U.S. Treasury, dividends paid to noncorporate U.S. Holders in taxable
years beginning before January 1, 2011 will be taxable at a maximum tax rate of 15%. Noncorporate
U.S. Holders should consult their own tax advisors to determine the implications of the rules
regarding this favorable rate in their particular circumstances.
The amount of a distribution will equal the U.S. dollar value of the euro received, calculated
by reference to the exchange rate in effect on the date such distribution is received (which, for
U.S. Holders of ADSs, will be the date such distribution is received by the depositary), whether or
not the depositary or U.S. Holder in fact converts any euro received into U.S. dollars at that
time. If the dividend is converted into U.S. dollars on the date of receipt, a U.S. Holder
generally should not be required to recognize foreign currency gain or loss in respect of the
dividend income. A U.S. Holder may have foreign currency gain or loss if such dividend is not
converted into U.S. dollars on the date of its receipt. In general, any foreign currency gain or
loss will be ordinary gain or loss.
Subject to applicable limitations that may vary depending upon a U.S. Holders circumstances
and subject to the discussion above regarding concerns expressed by the U.S. Treasury, a U.S.
Holder will be entitled to a credit against its U.S. federal income tax liability for Spanish NRIT
taxes withheld by BBVA or its paying agent not in excess of the applicable rate under the Treaty.
The limitation on foreign taxes eligible for credit is calculated separately with respect to
specific classes of income. The rules governing foreign tax credits are complex and,
60
therefore, U.S. Holders should consult their tax advisers regarding the availability of
foreign tax credits in their particular circumstances. In lieu of claiming a foreign tax credit,
U.S. Holders may elect to deduct all foreign taxes paid or accrued in a taxable year (including any
Spanish NRIT withholding tax) in computing their taxable income, subject to generally applicable
limitations under U.S. federal income tax law.
Sale and Other Disposition of ADSs or Shares
Gain or loss realized by a U.S. Holder on the sale or exchange of ADSs or ordinary shares will
be subject to U.S. federal income tax as capital gain or loss in an amount equal to the difference
between the U.S. Holders tax basis in the ADSs or ordinary shares and the amount realized on the
disposition, in each case as determined in U.S. dollars. Such gain or loss will be long-term
capital gain or loss if the U.S. Holder held the ordinary shares or ADSs for more than one year.
Gain or loss, if any, will generally be U.S.-source for foreign tax credit purposes. The
deductibility of capital losses is subject to limitations.
Passive Foreign Investment Company Rules
Based upon certain proposed Treasury regulations (Proposed Regulations) we believe that we
were not a PFIC for U.S. federal income tax purposes for our 2009 taxable year. However, because
there can be no assurance that the Proposed Regulations will be finalized in their current form and
because PFIC status depends upon the composition of a companys income and assets and the market
value of its assets (including, among others, less than 25% owned equity investments) from time to
time, there can be no assurance that we will not be considered a PFIC for any taxable year.
In general, if we were treated as a PFIC for any taxable year during which a U.S. Holder held
ADSs or ordinary shares, gain recognized by such U.S. Holder on a sale or other disposition of an
ADS or an ordinary share would be allocated ratably over the U.S. Holders holding period for the
ADS or the ordinary share. The amounts allocated to the taxable year of the sale or other
disposition and to any year before we became a PFIC would be taxed as ordinary income. The amount
allocated to each other taxable year would be subject to tax at the highest rate in effect for
ordinary income of taxpayers of the U.S. Holders type for such taxable year, and an interest
charge would be imposed on the resulting tax liability for such taxable year. Similar tax rules
would apply to any distribution in respect of ADSs or ordinary shares to the extent in excess of
125% of the average of the annual distributions on ADSs or ordinary shares received by the U.S.
Holder during the preceding three years or the U.S. Holders holding period, whichever is shorter.
Certain elections may be available (including a mark-to-market election) to U.S. persons that may
help mitigate the adverse consequences described above.
Additionally, if a U.S. Holder owns ADSs or ordinary shares during any year in which we are a
PFIC, such holder would be required to make an annual return (including reporting with respect to
distributions received from BBVA and any gain realized on the sale or other taxable disposition of
ADSs or ordinary shares). Furthermore, if we are a PFIC in any taxable year in which we pay a
dividend or the prior taxable year, the favorable tax rates discussed above with respect to
dividends paid to certain non-corporate U.S. Holders would not apply.
BBVA U.S. Senior Notes or BBVA Subordinated Capital Subordinated Notes
Payments of Interest
Interest paid on a senior note or subordinated note (each, a note) will be taxable to a U.S.
Holder as ordinary interest income at the time it accrues or is received in accordance with the
U.S. Holders method of accounting for U.S. federal income tax purposes, provided that the interest
is qualified stated interest (as defined below).
The amount of interest taxable as ordinary income will include amounts withheld in respect of
Spanish taxes, and additional amounts paid in respect thereof, if any. Interest income earned by a
U.S. Holder with respect to a Note will constitute foreign source income for U.S. federal income
tax purposes, which may be relevant to a U.S. Holder in calculating the holders foreign tax credit
limitation. The limitation on foreign taxes eligible for credit is calculated separately with
respect to specific classes of income. Spanish taxes withheld at a rate not exceeding the Treaty
rate from interest income on a note may be eligible for credit against the U.S. Holders U.S.
federal income tax liability, or, at the election of the U.S. Holder, for deduction in computing
the U.S. Holders taxable income, in
61
each case subject to generally applicable limitations and conditions. Amounts withheld with
respect to Spanish taxes as a result of a failure to comply with the procedures described in
Spanish Tax Considerations Preferred Securities, Senior Notes and Subordinated Notes
Evidencing of Beneficial Owner Residency in Connection with Distributions will not be eligible for
credit against a U.S. Holders U.S. federal income tax liability. The rules governing foreign tax
credits are complex and, therefore, U.S. Holders should consult their own tax advisors regarding
the availability of foreign tax credits in their particular circumstances.
Special rules governing the treatment of interest paid with respect to original issue discount
notes, including foreign currency notes, are described below.
Original Issue Discount
A note that is issued at an issue price less than its stated redemption price at maturity
will be considered to have been issued at an original issue discount for federal income tax
purposes (and will be referred to as an original issue discount note) unless the note satisfies a
de minimis
threshold (as described below) or is a Short-Term Note (as defined below). The stated
redemption price at maturity of a note will equal the sum of all payments required under the note
other than payments of qualified stated interest. Qualified stated interest is stated interest
unconditionally payable (other than in debt instruments of the issuer) at least annually during the
entire term of the note and equal to the outstanding principal balance of the note multiplied by a
single fixed rate or, subject to certain conditions, certain floating rates.
If the difference between a notes stated redemption price at maturity and its issue price is
less than a prescribed
de minimis
amount, i.e., 1/4 of 1 percent of the stated redemption price at
maturity multiplied by the number of complete years to maturity, then the note will not be
considered to have original issue discount.
A U.S. Holder of original issue discount notes will be required to include any qualified
stated interest payments in income in accordance with the U.S. Holders method of accounting for
U.S. federal income tax purposes. In addition, U.S. Holders of original issue discount notes that
mature more than one year from their date of issuance will be required to include original issue
discount in income for U.S. federal income tax purposes as it accrues, in accordance with a
constant yield method based on a compounding of interest, before the receipt of cash payments
attributable to this income. Under this method, U.S. Holders of original issue discount notes
generally will be required to include in income increasingly greater amounts of original issue
discount in successive accrual periods.
A U.S. Holder may make an election to include in gross income all interest that accrues on any
note (including stated interest, original issue discount,
de minimis
original issue discount, and
unstated interest, as adjusted by any amortizable bond premium or acquisition premium) in
accordance with a constant yield method based on the compounding of interest (a constant yield
election).
In general, floating rate notes providing for one or more qualified floating rates of
interest, a single fixed rate and one or more qualified floating rates, a single objective rate, or
a single fixed rate and a single objective rate that is a qualified inverse floating rate, as such
terms are defined in applicable Treasury regulations, will have qualified stated interest if
interest is unconditionally payable at least annually during the term of the note at a rate that is
considered to be a single qualified floating rate or a single objective rate under the following
rules; provided that the issue price of the note does not exceed the total noncontingent principal
payments due under the note by more than an amount equal to the lesser of (x) 0.015 multiplied by
the product of the total noncontingent principal payments and the number of complete years to
maturity from the issue date or (y) 15% of the total noncontingent principal payments. A qualified
floating rate is any variable rate where variations in the value of such rate can reasonably be
expected to measure contemporaneous variations in the cost of newly borrowed funds in the currency
in which the floating rate notes is denominated.
If a floating rate note provides for two or more qualified floating rates that can reasonably
be expected to have approximately the same values throughout the term of the note, the qualified
floating rates together constitute a single qualified floating rate. If interest on a debt
instrument is stated at a fixed rate for an initial period of one year or less followed by a
variable rate that is either a qualified floating rate or an objective rate for a subsequent
period, and the value of the variable rate on the issue date is intended to approximate the fixed
rate, the fixed rate and the variable rate together constitute a single qualified floating rate or
objective rate. Two or more rates will be
62
conclusively presumed to meet the requirements of the preceding sentences if the values of the
applicable rates on the issue date are within 1/4 of one percent of each other. If a floating rate
note provides for stated interest at either a single qualified floating rate or a single objective
rate throughout the term thereof that is unconditionally payable in cash or property (other than
debt instruments of the issuer) at least annually, then all stated interest on such note will
constitute qualified stated interest and will therefore not be treated as having been issued with
original issue discount unless the note is issued at a true discount (i.e., at a price below the
notes stated principal amount) in excess of the specified
de minimis
amount. If floating rate
notes are issued with original issue discount, the U.S. federal income tax treatment of such notes
will be more fully described in the applicable prospectus supplement.
A note that matures one year or less from its date of issuance (a Short-Term Note) will be
treated as being issued at a discount and none of the interest paid on the note will be treated as
qualified stated interest. In general, a cash method U.S. Holder of a Short-Term Note is not
required to accrue the discount for U.S. federal income tax purposes unless it elects to do so.
Accrual method U.S. Holders and cash method U.S. Holders who so elect are required to include the
discount in income as it accrues on a straight-line basis, unless another election is made to
accrue the discount according to a constant yield method based on daily compounding. In the case of
a U.S. Holder who is not required and who does not elect to include the discount in income
currently, any gain realized on the sale, exchange or retirement of the Short-Term Note will be
ordinary income to the extent of the discount accrued on a straight-line basis (or, if elected,
according to a constant yield method based on daily compounding) through the date of sale, exchange
or retirement. In addition, those holders will be required to defer deductions for any interest
paid on indebtedness incurred to purchase or carry Short-Term Notes in an amount not exceeding the
accrued discount until the accrued discount is included in income.
Amortizable Bond Premium
If a U.S. Holder purchases a note for an amount that is greater than the sum of all amounts
payable on the note other than qualified stated interest, the U.S. Holder will be considered to
have purchased the note with amortizable bond premium. In general, amortizable bond premium with
respect to any note will be equal in amount to the excess of the purchase price over the sum of all
amounts payable on the note other than qualified stated interest and the U.S. Holder may elect to
amortize this premium, using a constant-yield method, over the remaining term of the note. Special
rules may apply in the case of notes that are subject to optional redemption. A U.S. Holder may
generally use the amortizable bond premium allocable to an accrual period to offset qualified
stated interest required to be included in the U.S. Holders income with respect to the note in
that accrual period. A U.S. Holder who elects to amortize bond premium must reduce the U.S.
Holders tax basis in the note by the amount of the premium amortized in any year. An election to
amortize bond premium applies to all taxable debt obligations then owned and thereafter acquired by
the U.S. Holder and may be revoked only with the consent of the Internal Revenue Service.
If a U.S. Holder makes a constant-yield election (as described under Original Issue
Discount above) for a note with amortizable bond premium, such election will result in a deemed
election to amortize bond premium for all of the U.S. Holders debt instruments with amortizable
bond premium and may be revoked only with the permission of the Internal Revenue Service with
respect to debt instruments acquired after revocation.
Sale, Exchange or Retirement of the Notes
Upon the sale, exchange or retirement of a note, a U.S. Holder will recognize taxable gain or
loss equal to the difference between the amount realized on the sale, exchange or retirement and
the U.S. Holders adjusted tax basis in the note. Gain or loss, if any, will generally be
U.S.-source for purposes of computing a U.S. Holders foreign tax credit limitation. For these
purposes, the amount realized does not include any amount attributable to accrued interest. Amounts
attributable to accrued interest are treated as interest as described under Payments of
Interest above. A U.S. Holders adjusted tax basis in a note generally will equal such U.S.
Holders initial investment in the note increased by any original issue discount included in income
and decreased by any bond premium previously amortized and principal payments previously received.
Except as described below, gain or loss realized on the sale, exchange or retirement of a note
will generally be capital gain or loss and will be long-term capital gain or loss if at the time of
sale, exchange or retirement the note has been held for more than one year. Exceptions to this
general rule apply in the case of a Short-Term Note, to the
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extent of any accrued discount not previously included in the U.S. Holders taxable income.
See Original Issue Discount above. The deductibility of capital losses is subject to
limitations.
Foreign Currency Notes
The rules applicable to foreign currency notes could require some or all of the gain or loss
on the sale, exchange or other disposition of a foreign currency note to be recharacterized as
ordinary income or loss. The rules applicable to foreign currency notes are complex and their
application may depend on the U.S. Holders particular U.S. federal income tax situation. For
example, various elections are available under these rules, and whether a U.S. Holder should make
any of these elections may depend on the U.S. Holders particular U.S. federal income tax
situation. U.S. Holders are urged to consult their own tax advisers regarding the U.S. federal
income tax consequences of the acquisition, ownership and disposition of foreign currency notes.
A U.S. Holder who uses the cash method of accounting and who receives a payment of qualified
stated interest (or who receives proceeds from a sale, exchange or other disposition attributable
to accrued interest) in a foreign currency with respect to a foreign currency note will be required
to include in income the U.S. dollar value of the foreign currency payment (determined based on a
spot rate on the date the payment is received) regardless of whether the payment is in fact
converted into U.S. dollars at that time, and this U.S. dollar value will be the U.S. Holders tax
basis in the foreign currency.
An accrual-method U.S. Holder will be required to include in income the U.S. dollar value of
the amount of interest income (including original issue discount, but reduced by amortizable bond
premium to the extent applicable) that has accrued and is otherwise required to be taken into
account with respect to a foreign currency note during an accrual period. The U.S. dollar value of
the accrued income will be determined by translating the income at the average rate of exchange for
the accrual period or, with respect to an accrual period that spans two taxable years, at the
average rate for the partial period within the taxable year. The U.S. Holder may recognize ordinary
income or loss (which will not be treated as interest income or expense) with respect to accrued
interest income on the date the interest payment or proceeds from the sale, exchange or other
disposition attributable to accrued interest is actually received. The amount of ordinary income or
loss recognized will equal the difference between the U.S. dollar value of the foreign currency
payment received (determined based on a spot rate on the date the payment is received) in respect
of the accrual period and the U.S. dollar value of interest income that has accrued during the
accrual period (as determined above). Rules similar to these rules apply in the case of cash-method
U.S. Holders who are required to currently accrue original issue discount.
A U.S. Holder may elect to translate interest income (including original issue discount) into
U.S. dollars at the spot rate on the last day of the interest accrual period (or, in the case of a
partial accrual period, the spot rate on the last day of the taxable year) or, if the date of
receipt is within five business days of the last day of the interest accrual period, the spot rate
on the date of receipt. A U.S. Holder that makes this election must apply it consistently to all
debt instruments from year to year and cannot revoke the election without the consent of the
Internal Revenue Service.
Original issue discount and amortizable bond premium on a foreign currency note are to be
determined in the relevant foreign currency.
If an election to amortize bond premium is made, amortizable bond premium taken into account
on a current basis will reduce interest income in units of the relevant foreign currency. Exchange
gain or loss is realized on amortized bond premium with respect to any period by treating the bond
premium amortized in the period in the same manner as it would have been treated on the sale,
exchange or retirement of the foreign currency note. Any exchange gain or loss will be ordinary
income or loss as described below. If the election is not made, any bond premium will be taken into
account in determining the overall gain or loss on the notes and any loss realized on the sale,
exchange or retirement of a foreign currency note with amortizable bond premium by a U.S. Holder
who has not elected to amortize the premium will be a capital loss to the extent of the bond
premium.
A U.S. Holders tax basis in a foreign currency note, and the amount of any subsequent
adjustment to the U.S. Holders tax basis (including adjustments for original issue discount
included as income and any bond premium previously amortized or principal payments received), will
be the U.S. dollar value of the foreign currency amount
64
paid for such foreign currency note, or of the foreign currency amount of the adjustment,
determined on the date of the purchase or adjustment. A U.S. Holder who purchases a foreign
currency note with previously owned foreign currency will recognize ordinary income or loss in an
amount equal to the difference, if any, between the U.S. Holders tax basis in the foreign currency
and the U.S. dollar fair market value of the foreign currency note on the date of purchase.
Gain or loss realized upon the sale, exchange or retirement of a foreign currency note that is
attributable to fluctuations in currency exchange rates will be ordinary income or loss which will
not be treated as interest income or expense. Gain or loss attributable to fluctuations in exchange
rates will equal the difference between (i) the U.S. dollar value of the foreign currency principal
amount of the note, determined on the date the payment is received or the note is disposed of, (or
if the note is traded on an established securities market, on the settlement date if the U.S.
Holder is a cash basis U.S. Holder or an electing accrual basis U.S. Holder); and (ii) the U.S.
dollar value of the foreign currency principal amount of the note, determined on the date the U.S.
Holder acquired the note. Payments received attributable to accrued interest will be treated in
accordance with the rules applicable to payments of interest on foreign currency notes described
above. The foreign currency gain or loss will be recognized only to the extent of the total gain or
loss realized by a U.S. Holder on the sale, exchange or retirement of the foreign currency note.
The foreign currency gain or loss for U.S. Holders will be U.S.-source. Any gain or loss realized
by a U.S. Holder in excess of the foreign currency gain or loss will be capital gain or loss
(except in the case of a Short-Term Note, to the extent of any discount not previously included in
the U.S. Holders income).
A U.S. Holder will have a tax basis in any foreign currency received on the sale, exchange or
retirement of a foreign currency note equal to the U.S. dollar value of the foreign currency,
determined at the time of sale, exchange or retirement. Provided the foreign currency notes are
traded on an established securities market, a cash-method U.S. Holder who buys or sells a foreign
currency note is required to translate units of foreign currency paid or received into U.S. dollars
at the spot rate on the settlement date of the purchase or sale. Accordingly, no exchange gain or
loss will result from currency fluctuations between the trade date and the settlement of the
purchase or sale. An accrual-method U.S. Holder may elect the same treatment for all purchases and
sales of foreign currency notes, provided the foreign currency notes are traded on an established
securities market. This election cannot be revoked without the consent of the Internal Revenue
Service. Any gain or loss realized by a U.S. Holder on a sale or other disposition of foreign
currency (including its exchange for U.S. dollars or its use to purchase foreign currency notes)
will be ordinary income or loss.
A U.S. Holder may be required to file a reportable transaction disclosure statement with the
U.S. Holders U.S. federal income tax return, if such U.S. Holder realizes a loss on the sale or
other disposition of a foreign currency note and such loss is greater than applicable threshold
amounts, which differ depending on the status of the U.S. Holder. A U.S. Holder that claims a
deduction with respect to a foreign currency note should consult its own tax adviser regarding the
need to file a reportable transaction disclosure statement.
Information Reporting and Backup Withholding
Payments of dividends on, interest and the proceeds from a sale or other disposition of, ADSs,
ordinary shares, senior notes or subordinated notes that are made within the United States or
through certain U.S.-related financial intermediaries generally are subject to information
reporting and to backup withholding unless the U.S. Holder is an exempt recipient or, in the case
of backup withholding, the holder provides a correct taxpayer identification number and certifies
that no loss of exemption from backup withholding has occurred. The amount of any backup
withholding from a payment to a U.S. Holder will be allowed as a credit against the holders U.S.
federal income tax liability and may entitle the holder to a refund, provided that the required
information is timely furnished to the Internal Revenue Service.
65
BENEFIT PLAN INVESTOR CONSIDERATIONS
The Employee Retirement Income Security Act of 1974, as amended (ERISA), and Section 4975 of
the Internal Revenue Code of 1986, (the Code), impose certain requirements on (a) employee
benefit plans subject to Title I of ERISA, (b) individual retirement accounts, Keogh plans or other
arrangements subject to Section 4975 of the Code, (c) entities whose underlying assets include
plan assets by reason of any such plans or arrangements investment therein (we refer to the
foregoing collectively as Plans) and (d) persons who are fiduciaries with respect to Plans. In
addition, certain governmental, church and non-U.S. plans (Non-ERISA Arrangements) are not
subject to Section 406 of ERISA or Section 4975 of the Code, but may be subject to other laws that
are substantially similar to those provisions (each, a Similar Law).
In addition to ERISAs general fiduciary standards, Section 406 of ERISA and Section 4975 of
the Code prohibit certain transactions involving the assets of a Plan and persons who have
specified relationships to the Plan,
i.e.
, parties in interest as defined in ERISA or
disqualified persons as defined in Section 4975 of the Code (we refer to the foregoing
collectively as parties in interest) unless exemptive relief is available under an exemption
issued by the U.S. Department of Labor. Parties in interest that engage in a non-exempt prohibited
transaction may be subject to excise taxes and other penalties and liabilities under ERISA and
Section 4975 of the Code. We, and our current and future affiliates, may be parties in interest
with respect to many Plans. Thus, a Plan fiduciary considering an investment in the securities
described in this prospectus should also consider whether such an investment might constitute or
give rise to a prohibited transaction under ERISA or Section 4975 of the Code. For example, the
securities may be deemed to represent a direct or indirect sale of property, extension of credit or
furnishing of services between us and an investing Plan which would be prohibited if we are a party
in interest with respect to the Plan unless exemptive relief were available under an applicable
exemption.
In this regard, each prospective purchaser that is, or is acting on behalf of, a Plan, and
proposes to purchase the securities described in this prospectus, should consider the exemptive
relief available under the following prohibited transaction class exemptions, or PTCEs: (A) the
in-house asset manager exemption (PTCE 96-23), (B) the insurance company general account exemption
(PTCE 95-60), (C) the bank collective investment fund exemption (PTCE 91-38), (D) the insurance
company pooled separate account exemption (PTCE 90-1) and (E) the qualified professional asset
manager exemption (PTCE 84-14). In addition, ERISA Section 408(b)(17) and Section 4975(d)(20) of
the Code may provide a limited exemption for the purchase and sale of securities and related
lending transactions, provided that neither the issuer of the securities nor any of its affiliates
have or exercise any discretionary authority or control or render any investment advice with
respect to the assets of the Plan involved in the transaction and provided further that the Plan
pays no more, and receives no less, than adequate consideration in connection with the transaction
(the so-called service provider exemption). There can be no assurance that any of these
statutory or class exemptions will be available with respect to transactions involving the
securities described in this prospectus.
Each purchaser or holder of a security covered by this prospectus, and each fiduciary who
causes any entity to purchase or hold a security covered by this prospectus, shall be deemed to
have represented and warranted, on each day such purchaser or holder holds such securities, that
either (i) it is neither a Plan nor a Non-ERISA Arrangement and it is not purchasing or holding
securities on behalf of or with the assets of any Plan or Non-ERISA arrangement; or (ii) its
purchase, holding and subsequent disposition of such securities shall not constitute or result in a
non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or any
provision of Similar Law.
Fiduciaries of any Plans and Non-ERISA Arrangements should consult their own legal counsel
before purchasing the securities described in this prospectus. We also refer you to the portions
of the offering circular addressing restrictions applicable under ERISA, the Code and Similar Law.
Each purchaser of a security covered by this prospectus will have exclusive responsibility for
ensuring that its purchase, holding and subsequent disposition of the security does not violate the
fiduciary or prohibited transaction rules of ERISA, the Code or any Similar Law. Nothing herein
shall be construed as a representation that an investment in the securities described in this
prospectus would meet any or all of the relevant legal requirements with respect to investments by,
or is appropriate for, Plans or Non-ERISA Arrangements generally or any particular Plan or
Non-ERISA Arrangement.
66
PLAN OF DISTRIBUTION
We and, in the case of the preferred securities and the notes, the relevant subsidiary issuer,
may sell the securities being offered by this prospectus: (1) through selling agents; (2) through
underwriters; (3) through dealers; and/or (4) directly to purchasers. Any of these selling agents,
underwriters or dealers in the United States or outside the United States may include affiliates of
ours or the subsidiary issuers. In addition, we may issue our ordinary shares (including in the
form of ADSs) in a subscription rights offering to our existing shareholders.
We and the relevant subsidiary issuer may designate selling agents from time to time to
solicit offers to purchase these securities. We and the relevant subsidiary issuer will name any
such agent, who may be deemed to be an underwriter as that term is defined in the Securities Act
and state any commissions we or the relevant subsidiary issuer are to pay to that agent in the
applicable prospectus supplement or term sheet. That agent will be acting on a reasonable efforts
basis for the period of its appointment unless otherwise indicated in the applicable prospectus
supplement or term sheet.
If we or any relevant subsidiary issuer use any underwriters to offer and sell these
securities, we and the relevant subsidiary issuer, if any, will enter into an underwriting
agreement with those underwriters when we and the relevant subsidiary issuer, if any, and they
determine the offering price of the securities, and we and the relevant subsidiary issuer, if any,
will include the names of the underwriters and the terms of the transaction, including the
compensation the underwriters will receive, in the applicable prospectus supplement or term sheet.
If we offer our ordinary shares in a subscription rights offering to our existing
shareholders, we may enter into a standby underwriting agreement with dealers acting as standby
underwriters. We may pay the standby underwriters a commitment fee for the securities they commit
to purchase on a standby basis. If we do not enter into a standby underwriting arrangement, we may
retain a dealer-manager to manage a subscription rights offering for us.
If we or a subsidiary issuer use(s) a dealer to offer and sell these securities, we or the
relevant subsidiary issuer will sell the securities to the dealer, as principal, and will name the
dealer and include the terms of the transaction in the applicable prospectus supplement or term
sheet. The dealer may then resell the securities to the public at varying prices to be determined
by that dealer at the time of resale.
A subsidiary issuers or our net proceeds will be the purchase price in the case of sales to a
dealer, the public offering price less discount in the case of sales to an underwriter or the
purchase price less commission in the case of sales through a selling agent, in each case, less
other expenses attributable to issuance and distribution.
Offers to purchase securities may be solicited directly by us or the relevant subsidiary
issuer, and the sale of those securities may be made by us or the relevant subsidiary issuer
directly to institutional investors or others, who may be deemed to be underwriters within the
meaning of the Securities Act with respect to any resale of those securities. The terms of any
sales of this type will be described in the applicable prospectus supplement or term sheet.
We may engage in at the market offerings into an existing trading market in accordance with
Rule 415(a)(4) of the Securities Act.
One or more firms, referred to as remarketing firms, may also offer or sell the securities,
if the applicable prospectus supplement so indicates, in connection with a remarketing arrangement
upon their purchase. Remarketing firms will act as principals for their own accounts or as agents
for us, a subsidiary issuer or any of our other subsidiaries. These remarketing firms will offer or
sell the securities in accordance with a redemption or repayment pursuant to the terms of the
securities. The applicable prospectus supplement or term sheet will identify any remarketing firm
and the terms of its agreement, if any, with us, a subsidiary issuer or any of our other
subsidiaries and will describe the remarketing firms compensation. Remarketing firms may be deemed
to be underwriters within the meaning of the Securities Act in connection with the securities they
remarket.
Until the distribution of the securities is completed, rules of the SEC may limit the ability
of underwriters and other participants in the offering to bid for and purchase the securities
covered by the prospectus. As an exception to these rules, the underwriters may engage in
transactions that stabilize, maintain or otherwise affect the price of such
67
securities or any other securities the prices of which may be used to determine payments on
such securities. Specifically, the underwriters may sell more securities than they are obligated to
purchase in connection with the offering, creating a short position for their own accounts. A short
sale is covered if the short position is no greater than the number or amount of securities
available for purchase by the underwriters under any over-allotment option. The underwriters can
close out a covered short sale by exercising the over-allotment option or purchasing such
securities in the open market. In determining the source of securities to close out a covered short
sale, the underwriters will consider, among other things, the open market price of such securities
compared to the price available under any over-allotment option. The underwriters may also sell the
securities covered by this prospectus in excess of any over-allotment option, creating a naked
short position. The underwriters must close out any naked short position by purchasing securities
in the open market. A naked short position is more likely to be created if the underwriters are
concerned that there may be downward pressure on the price of the offered securities in the open
market after pricing that could adversely affect investors who purchase in the offering. As an
additional means of facilitating the offering, the underwriters may bid for, and purchase, such
securities or any other securities in the open market to stabilize the price of such securities or
of any other securities. The underwriters also may impose a penalty bid on certain underwriters.
This means that if the underwriters purchase the securities in the open market to reduce the
underwriters short position or to stabilize the price of the securities, they may reclaim the
amount of the selling concession from the underwriters who sold those securities as part of the
offering. In general, purchases of a security for the purpose of stabilization or to reduce a
short position could cause the price of the security to be higher than it might be in the absence
of such purchases. The imposition of a penalty bid might also have an effect on the price of a
security to the extent that it were to discourage resales of the security. Any of these activities
may raise or maintain the market price of such securities above independent market levels or
prevent or retard a decline in the market price of such securities. The underwriters are not
required to engage in these activities, and may end any of these activities at any time.
Selling agents, underwriters, dealers and remarketing firms may be entitled under agreements
with us and/or a subsidiary issuer, as the case may be, to indemnification by us and/or such
subsidiary issuer against some civil liabilities, including liabilities under the Securities Act,
and may be customers of, engage in transactions with or perform services for us and/or such
subsidiary issuer in the ordinary course of business.
If so indicated in the applicable prospectus supplement or term sheet, we and the relevant
subsidiary issuer will authorize selling agents, underwriters or dealers to solicit offers by some
purchasers to purchase securities from us or the relevant subsidiary issuer at the public offering
price stated in the applicable prospectus supplement or term sheet under delayed delivery contracts
providing for payment and delivery on a specified date in the future. If we use delayed delivery
contracts, we will disclose that we are using them in the prospectus supplement or term sheet and
will tell you when we will demand payment and delivery of the securities under the delayed delivery
contracts. These contracts will be subject only to those conditions described in the applicable
prospectus supplement or term sheet, and the applicable prospectus supplement will state the
commission payable for solicitation of these offers.
Any underwriter, selling agent or dealer utilized in the initial offering of securities will
not confirm sales to accounts over which it exercises discretionary authority without the prior
specific written approval of its customer.
To the extent an initial offering of the securities will be distributed by an affiliate of
ours or of one of the subsidiary issuers, each such offering of securities will be conducted in
compliance with the requirements of Rule 2720 of the National Association of Securities Dealers,
Inc., which is commonly referred to as the NASD, regarding a Financial Industry Regulatory
Authority (FINRA) member firms distribution of securities of an affiliate.
Underwriting discounts and commissions on securities sold in the initial distribution will not
exceed 8% of the offering proceeds.
In the ordinary course of their respective businesses, the underwriters named in the
applicable prospectus supplement or term sheet and their affiliates may have engaged and may in the
future engage in various banking and financial services for and commercial transactions with us,
one or more subsidiary issuers and/or our, its and/or their affiliates for which they received or
will receive customary fees and expenses. In addition, affiliates of the underwriters may enter
into interest rate swaps or other hedging transactions with us in connection with a particular
offering of securities and may receive compensation in connection with that transaction.
68
VALIDITY OF THE SECURITIES
The validity of our and the subsidiary issuers securities, where applicable, and certain
other matters of Spanish law will be passed upon for us and the subsidiary issuers by J&A Garrigues
S.L.P., our and the subsidiary issuers Spanish counsel. Certain matters of U.S. federal and New
York State law will be passed upon for us and the subsidiary issuers by Davis Polk & Wardwell LLP
our and the subsidiary issuers U.S. counsel, and for any underwriters or agents by Sidley Austin
LLP, the underwriters U.S. counsel.
EXPERTS
The consolidated financial statements and the effectiveness of internal control over financial
reporting incorporated by reference in this prospectus from BBVAs 2009 Form 20-F have been audited
by Deloitte S.L., an independent registered public accounting firm, as stated in their reports
which are incorporated herein by reference (which reports (1) express an unqualified opinion on the
consolidated financial statements of the BBVA Group and include an explanatory paragraph stating
that the International Financial Reporting Standards adopted by the EU required to be applied under
Circular 4/2004 vary in certain significant respects from U.S. GAAP, that the information relating
to the nature and effect of such differences is presented in Note 60 to the consolidated financial
statements of the BBVA Group and (2) express an unqualified opinion on the effectiveness of
internal control over financial reporting), and have been so incorporated in reliance upon the
reports of such firm given upon their authority as experts in accounting and auditing.
ENFORCEMENT OF CIVIL LIABILITIES
Each of BBVA and the subsidiary issuers is a limited liability company (
sociedad anónima
)
organized under the laws of Spain. Substantially all of our directors and executive officers and
all of the directors and officers of the subsidiary issuers, and certain of the experts named in
this document, are not residents of the United States. All or a substantial portion of our assets
and the assets of the subsidiary issuers and those persons are located outside the United States.
As a result, it may not be possible for investors to effect service of process within the United
States upon such persons with respect to matters arising under the Securities Act or to enforce
against them judgments of courts of the United States predicated upon civil liability under the
Securities Act. We and the subsidiary issuers are advised by Spanish legal counsel that there is
doubt as to the enforceability in Spain in original actions or in actions for enforcement of
judgments of U.S. courts, of liabilities predicated solely upon the securities laws of the United
States. We and the subsidiary issuers have submitted to the non-exclusive jurisdiction of New York
state and U.S. federal courts sitting in New York City for the purpose of any suit, action or
proceeding arising out of or in connection with the preferred securities, senior notes and
subordinated notes and have appointed Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, as
agent in New York City to accept service of process in any such action.
69
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 8. Indemnification of Directors and Officers
BBVA
Indemnification under BBVAs bylaws (estatutos) and Spanish Law
Under Spanish law BBVAs current and former directors will be liable to BBVA and the
shareholders and the creditors of BBVA for any damage they cause through acts contrary to the law
or the bylaws, or acts carried out in breach of the duties inherent in the discharge of their
office. No provision of BBVAs bylaws provides for the indemnification of the directors with
respect to such liabilities.
BBVA Directors & Officers Insurance
BBVA maintains an insurance policy that protects its officers and directors from liabilities
incurred as a result of actions taken in their official capacity associated with any civil,
criminal or administrative process.
BBVA International Preferred
Indemnification under BBVA International Preferreds bylaws (estatutos) and Spanish Law
Under Spanish law BBVA International Preferreds current and former directors will be liable
to BBVA International Preferred and the shareholders and the creditors of BBVA International
Preferred for any damage they cause through acts contrary to the law or the bylaws, or acts carried
out in breach of the duties inherent in the discharge of their office. No provision of BBVA
International Preferreds bylaws provides for the indemnification of the directors with respect to
such liabilities.
BBVA Group Directors & Officers Insurance
BBVA maintains an insurance policy that protects officers and directors of companies
constituting the BBVA Group, including BBVA International Preferred, from liabilities incurred as a
result of actions taken in their official capacity associated with any civil, criminal or
administrative process.
BBVA U.S. Senior
Indemnification under BBVA U.S. Seniors bylaws (estatutos) and Spanish Law
Under Spanish law BBVA U.S. Seniors current and former directors will be liable to BBVA U.S.
Senior and the shareholders and the creditors of BBVA U.S. Senior for any damage they cause through
acts contrary to the law or the bylaws, or acts carried out in breach of the duties inherent in the
discharge of their office. No provision of BBVA U.S. Seniors bylaws provides for the
indemnification of the directors with respect to such liabilities.
BBVA Group Directors & Officers Insurance
BBVA maintains an insurance policy that protects officers and directors of companies
constituting the BBVA Group, including BBVA U.S. Senior, from liabilities incurred as a result of
actions taken in their official capacity associated with any civil, criminal or administrative
process.
BBVA Subordinated Capital
Indemnification under BBVA Subordinated Capitals bylaws (estatutos) and Spanish Law
Under Spanish law BBVA Subordinated Capitals current and former directors will be liable to
BBVA Subordinated Capital and the shareholders and the creditors of BBVA Subordinated Capital for
any damage they cause through acts contrary to the law or the bylaws, or acts carried out in breach
of the duties inherent in the
70
discharge of their office. No provision of BBVA Subordinated Capitals bylaws provides for the
indemnification of the directors with respect to such liabilities.
BBVA Group Directors & Officers Insurance
BBVA maintains an insurance policy that protects officers and directors of companies
constituting the BBVA Group, including BBVA Subordinated Capital, from liabilities incurred as a
result of actions taken in their official capacity associated with any civil, criminal or
administrative process.
71
Item 9. Exhibits
|
|
|
|
|
Number
|
|
Description
|
|
Incorporated by Reference to Filings Indicated
|
1.1
|
|
Form of Underwriting Agreement for
Ordinary Shares
|
|
**
|
|
|
|
|
|
1.2
|
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Form of Underwriting Agreement for
Preferred Securities
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|
*
|
|
|
|
|
|
1.3
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Form of Underwriting Agreement for
Senior Notes
|
|
*
|
|
|
|
|
|
1.4
|
|
Form of Underwriting Agreement for
Subordinated Notes
|
|
*
|
|
|
|
|
|
3.1
|
|
Amended and Restated bylaws (
Estatutos
)
of Banco Bilbao Vizcaya Argentaria, S.A.
(English translation)
|
|
Exhibit 1.1 to Banco Bilbao Vizcaya
Argentaria, S.A.s 2009 Annual Report on Form
20-F filed on March 29, 2010
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|
|
|
|
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3.2
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Bylaws (
Estatutos
) of BBVA International
Preferred, S.A. Unipersonal (English
translation)
|
|
*
|
|
|
|
|
|
3.3
|
|
Bylaws (
Estatutos
) of BBVA U.S. Senior,
S.A. Unipersonal (English translation)
|
|
*
|
|
|
|
|
|
3.4
|
|
Bylaws (
Estatutos
) of BBVA Subordinated
Capital, S.A. Unipersonal (English
translation)
|
|
*
|
|
|
|
|
|
4.1
|
|
Form of Amended and Restated Deposit
Agreement
|
|
Exhibit 1 to registration statement on Form
F-6 (File No. 333-142862), filed on May 11,
2007
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|
|
|
|
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4.2
|
|
Form of Preferred Security
|
|
**
|
|
|
|
|
|
4.3
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|
Form of Preferred Security Guarantee
|
|
**
|
|
|
|
|
|
4.4
|
|
Form of Issuing and Paying Agency
Agreement for Preferred Securities
|
|
**
|
|
|
|
|
|
4.5
|
|
Regulations of the Syndicate of BBVA
International Preferred S.A. Unipersonal
Preferred Security Holders
|
|
**
|
|
|
|
|
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4.6
|
|
Senior Indenture among BBVA U.S. Senior,
S.A. Unipersonal, as Issuer, Banco
Bilbao Vizcaya Argentaria, S.A. as
Guarantor, and The Bank of New York
Mellon, as Trustee, including the form
of Senior Guarantee and form of
Regulations of the Syndicate of Senior
Note Holders
|
|
*
|
|
|
|
|
|
4.7
|
|
Form of Senior Notes
|
|
*
|
72
|
|
|
|
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Number
|
|
Description
|
|
Incorporated by Reference to Filings Indicated
|
4.8
|
|
Subordinated Indenture among BBVA
Subordinated Capital, S.A. Unipersonal,
as Issuer, Banco Bilbao Vizcaya
Argentaria, S.A. as Guarantor, and The
Bank of New York Mellon, as Trustee,
including the form of Subordinated
Guarantee and form of Regulations of the
Syndicate of Subordinated Note Holders
|
|
*
|
|
|
|
|
|
4.9
|
|
Form of Subordinated Notes
|
|
*
|
|
|
|
|
|
5.1
|
|
Opinion of J&A Garrigues S.L.P. as to
the validity of the ordinary shares, the
rights, the preferred securities, the
senior notes, the subordinated notes,
the preferred securities guarantees, the
senior guarantees and the subordinated
guarantees
|
|
*
|
|
|
|
|
|
5.2
|
|
Opinion of Davis Polk & Wardwell LLP as
to the senior notes and the subordinated
notes
|
|
*
|
|
|
|
|
|
12
|
|
Statement Regarding Computation of Ratios
|
|
*
|
|
|
|
|
|
23.1
|
|
Consent of Deloitte, S.L.
|
|
*
|
|
|
|
|
|
23.2
|
|
Consent of J&A Garrigues S.L.P.
(included in Exhibit 5.1)
|
|
|
|
|
|
|
|
23.3
|
|
Consent of Davis Polk & Wardwell LLP
(included in Exhibit 5.2)
|
|
|
|
|
|
|
|
24.1
|
|
Power of Attorney of Banco Bilbao
Vizcaya Argentaria, S.A. (included in
BBVA signature page)
|
|
|
|
|
|
|
|
24.2
|
|
Power of Attorney of BBVA International
Preferred, S.A. Unipersonal (included on
BBVA International Preferred, S.A.
Unipersonal signature page)
|
|
|
|
|
|
|
|
24.3
|
|
Power of Attorney of BBVA U.S. Senior,
S.A. Unipersonal (included on BBVA U.S.
Senior, S.A. Unipersonal signature page)
|
|
|
|
|
|
|
|
24.4
|
|
Power of Attorney of BBVA Subordinated
Capital, S.A. Unipersonal (included on
BBVA Subordinated Capital, S.A.
Unipersonal signature page)
|
|
|
|
|
|
|
|
25.1
|
|
Statement of Eligibility on Form T-1 of
The Bank of New York Mellon, as trustee
under the senior indenture
|
|
*
|
|
|
|
|
|
25.2
|
|
Statement of Eligibility on Form T-1 of
the Bank of New York Mellon, as trustee
under the subordinated indenture
|
|
*
|
|
|
|
*
|
|
Filed herewith.
|
|
**
|
|
To be filed by amendment or incorporated by reference to a subsequently filed Form 6-K.
|
73
Item 10. Undertakings
The undersigned registrants hereby undertake:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of
1933, as amended (the Securities Act);
(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment
thereto) which, individually or in the aggregate, represent a fundamental change in the
information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20% change in the
maximum aggregate offering price set forth in the Calculation of Registration Fee
table in the effective registration statement;
(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement;
provided
,
however
, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the
information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by Banco Bilbao Vizcaya Argentaria, S.A.
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
(4) To file a post-effective amendment to the registration statement to include any
financial statements required by Item 8.A of Form 20-F at the start of any delayed offering
or throughout a continuous offering. Financial statements and information otherwise
required by Section 10(a)(3) of the Securities Act need not be furnished,
provided
, that
the registrants include in the prospectus, by means of a post-effective amendment,
financial statements required pursuant to this paragraph (4) and other information
necessary to ensure that all other information in the prospectus is at least as current as
the date of those financial statements. Notwithstanding the foregoing, a post-effective
amendment need not be filed to include financial statements and information required by
Section 10(a)(3) of the Securities Act or Rule 3-19 of Regulation S-X if such financial
statements and information are contained in periodic reports filed with or furnished to the
Commission by Banco Bilbao Vizcaya Argentaria, S.A. pursuant to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934 that are incorporated by reference in this
registration statement.
(5) That, for the purpose of determining liability under the Securities Act to any
purchaser:
(i) Each prospectus filed by the registrants pursuant to Rule 424(b)(3) shall be
deemed to be part of the registration statement as of the date the filed prospectus was
deemed part of and included in the registration statement; and
74
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or
(b)(7) as part of a registration statement in reliance on Rule 430B relating to an
offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing
the information required by Section 10(a) of the Securities Act shall be deemed to be
part of and included in the registration statement as of the earlier of the date such
form of prospectus is first used after effectiveness or the date of the first contract
of sale of securities in the offering described in the prospectus. As provided in Rule
430B, for liability purposes of the issuer and any person that is at that date an
underwriter, such date shall be deemed to be a new effective date of the registration
statement relating to the securities in the registration statement to which the
prospectus relates, and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
Provided, however
, that no statement made in
a registration statement or prospectus that is part of the registration statement or
made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement will,
as to a purchaser with a time of contract of sale prior to such effective date,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document
immediately prior to such effective date.
(6) That, for the purpose of determining liability of the registrants under the Securities
Act to any purchaser in the initial distribution of the securities, each undersigned
registrant undertakes that in a primary offering of securities of such undersigned
registrant pursuant to this registration statement, regardless of the underwriting method
used to sell the securities to the purchaser, if the securities are offered or sold to such
purchaser by means of any of the following communications, such undersigned registrant will
be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrants
relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf
of the undersigned registrants or used or referred to by the undersigned registrants;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrants or their securities
provided by or on behalf of the undersigned registrants; and
(iv) Any other communication that is an offer in the offering made by the
undersigned registrants to the purchaser.
(7) That, for purposes of determining any liability under the Securities Act, each filing
of Banco Bilbao Vizcaya Argentaria, S.A.s annual report pursuant to Section 13(a) or 15(d)
of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee
benefit plans annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934) that is incorporated by reference in the registration statement shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering
thereof.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted
to directors, officers or persons controlling the registrants pursuant to the foregoing provisions,
or otherwise, the registrants have been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by a registrant of expenses incurred or paid by a director, officer or
controlling person of such registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person against any registrant in connection
with the securities being registered, such registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.
75
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, Banco Bilbao Vizcaya
Argentaria, S.A. certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form F-3 and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized in Spain, on June 28, 2010.
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BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
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By:
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/s/ Manuel González Cid
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Name:
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Manuel González Cid
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Title: Chief Financial Officer
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POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS that each of the individuals whose signature appears below
(whether as a member of the Board of Directors or officer of Banco Bilbao Vizcaya Argentaria, S.A.,
as authorized representative of Banco Bilbao Vizcaya Argentaria, S.A. or otherwise) constitutes and
appoints Manuel González Cid and Pedro M
a
Urresti Laca and each of them, his or her true and lawful
attorneys-in-fact and agent, with full and several power of substitution, for him or her and in his
or her name, place and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) and supplements to this registration statement or any registration
statement in connection herewith that is to be effective upon filing pursuant to Rule 462 (b) under
the Securities Act of 1933, and to file the same, with all
exhibits thereto, and all documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and
about the premises, as fully for all intents and purposes as he or she might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been
signed by the following persons in the capacities and on the dates indicated.
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Signature
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Title
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Date
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/s/ Francisco González Rodríguez
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Chairman of the Board of Directors
and Chief Executive
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June 28, 2010
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Francisco González Rodríguez
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Officer
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/s/ Angel Cano Fernández
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President and Chief Operating Officer
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June 28, 2010
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Angel Cano Fernández
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/s/ Tomás Alfaro Drake
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Director
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June 28, 2010
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Tomás Alfaro Drake
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/s/ Juan Carlos Álvarez Mezquíriz
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Director
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June 28, 2010
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Juan Carlos Álvarez Mezquíriz
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/s/ Rafael Bermejo Blanco
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Director
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June 28, 2010
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Rafael Bermejo Blanco
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76
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Signature
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Title
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Date
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/s/ Ramón Bustamante y de la Mora
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Director
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June 28, 2010
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Ramón Bustamante y de la Mora
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/s/ José Antonio Fernández Rivero
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Director
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June 28, 2010
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José Antonio Fernández Rivero
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/s/ Ignacio Ferrero Jordi
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Director
|
|
June 28, 2010
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Ignacio Ferrero Jordi
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/s/ Carlos Loring Martínez de Irujo
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Director
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June 28, 2010
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Carlos Loring Martínez de Irujo
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/s/ José Maldonado Ramos
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Director
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June 28, 2010
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José Maldonado Ramos
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/s/ Enrique Medina Fernández
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Director
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June 28, 2010
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Enrique Medina Fernández
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/s/ Susana Rodríguez Vidarte
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Director
|
|
June 28, 2010
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Susana Rodríguez Vidarte
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/s/ Manuel González Cid
|
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Chief Financial Officer
|
|
June 28, 2010
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Manuel González Cid
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/s/ Javier Malagón Navas
|
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Chief Accounting Officer
|
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June 28, 2010
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Javier Malagón Navas
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/s/ Emilio Juan de las Heras Muela
|
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Authorized Representative of Banco
Bilbao Vizcaya
|
|
June 28, 2010
|
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Emilio Juan de las Heras Muela
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Argentaria, S.A. in the United States
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77
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, BBVA International
Preferred, S.A. Unipersonal certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form F-3 and has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized in Spain, on June 28, 2010.
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BBVA INTERNATIONAL PREFERRED,
S.A. UNIPERSONAL
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By:
|
/s/ Pedro M
a
Urresti Laca
|
|
|
|
Name:
|
Pedro M
a
Urresti Laca
|
|
|
|
Title: Chairman of the Board of Directors
|
|
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS that each of the individuals whose signature appears below
(whether as a member of the board of directors or officer of BBVA International Preferred, S.A.
Unipersonal, as authorized representative of BBVA International Preferred, S.A. Unipersonal or
otherwise) constitutes and appoints Pedro M
a
Urresti Laca, Juan Isusi Garteiz Gogeascoa, Antonio
Borraz Peralta, Francisco Javier Colomer Betoret and Raul Moreno Carnero and each of them, his or
her true and lawful attorneys-in-fact and agent, with full and several power of substitution, for
him or her and in his or her name, place and stead, in any and all capacities, to sign any and all
amendments (including post-effective amendments) and supplements to this registration statement or
any registration statement in connection herewith that is to be effective upon filing pursuant to
Rule 462(b) under the Securities Act of 1933, as amended (the Securities Act) and to file the
same, with all exhibits thereto, and all documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully for all intents and purposes as he or she might or could do in
person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them,
or their substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the dates indicated.
|
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|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Pedro M
a
Urresti Laca
|
|
Chairman of the Board of
|
|
June 28, 2010
|
|
|
|
|
|
Pedro M
a
Urresti Laca
|
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Directors and Director
|
|
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|
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|
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/s/ Ana Fernández Manrique
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Director
|
|
June 28, 2010
|
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|
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Ana Fernández Manrique
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/s/ Francisco Javier Colomer Betoret
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Director
|
|
June 28, 2010
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Francisco Javier Colomer Betoret
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/s/ Juan Isusi Garteiz Gogeascoa
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Director
|
|
June 28, 2010
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Juan Isusi Garteiz Gogeascoa
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/s/ Juan Carlos García Pérez
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Director
|
|
June 28, 2010
|
|
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|
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Juan Carlos García Pérez
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78
|
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Signature
|
|
Title
|
|
Date
|
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|
|
|
/s/ Tomás Sánchez Zabala
|
|
Director
|
|
June 28, 2010
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Tomás Sánchez Zabala
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Authorized Representative
|
|
June 28, 2010
|
|
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of BBVA International
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Preferred, S.A.
|
|
|
/s/ Ricardo Marine
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|
Unipersonal in the United States
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Ricardo Marine
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79
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, BBVA U.S. Senior, S.A.
Unipersonal certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form F-3 and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized in Spain, on June 28, 2010.
|
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|
|
BBVA U.S. SENIOR, S.A. UNIPERSONAL
|
|
|
By:
|
/s/ Pedro M
a
Urresti Laca
|
|
|
|
Name:
|
Pedro M
a
Urresti Laca
|
|
|
|
Title: Chairman of the Board of Directors
|
|
|
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS that each of the individuals whose signature appears below
(whether as a member of the board of directors or officer of BBVA U.S. Senior, S.A. Unipersonal, as
authorized representative of BBVA U.S. Senior, S.A. Unipersonal or otherwise) constitutes and
appoints Pedro M
a
Urresti Laca, Juan Isusi Garteiz Gogeascoa, Antonio Borraz Peralta, Francisco
Javier Colomer Betoret and Raul Moreno Carnero and each of them, his or her true and lawful
attorneys-in-fact and agent, with full and several power of substitution, for him or her and in his
or her name, place and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) and supplements to this registration statement or any registration
statement in connection herewith that is to be effective upon filing pursuant to Rule 462(b) under
the Securities Act of 1933, as amended (the Securities Act), and to file the same, with all
exhibits thereto, and all documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and
about the premises, as fully for all intents and purposes as he or she might or could do in person,
hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their
substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the dates indicated.
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Pedro M
a
Urresti Laca
|
|
Chairman of the Board of
|
|
June 28, 2010
|
|
|
|
|
|
Pedro M
a
Urresti Laca
|
|
Directors and Director
|
|
|
|
|
|
|
|
/s/ Ana Fernández Manrique
|
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Director
|
|
June 28, 2010
|
|
|
|
|
|
Ana Fernández Manrique
|
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|
|
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|
|
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|
|
/s/ Juan Isusi Garteiz Gogeascoa
|
|
Director
|
|
June 28, 2010
|
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|
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Juan Isusi Garteiz Gogeascoa
|
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|
|
/s/ Raúl Moreno Carnero
|
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Director
|
|
June 28, 2010
|
|
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|
|
Raúl Moreno Carnero
|
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|
|
/s/ Juan Carlos García Pérez
|
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Director
|
|
June 28, 2010
|
|
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|
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Juan Carlos García Pérez
|
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80
|
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|
|
Signature
|
|
Title
|
|
Date
|
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|
|
|
|
/s/ Tomás Sánchez Zabala
|
|
Director
|
|
June 28, 2010
|
|
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Tomás Sánchez Zabala
|
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Authorized Representative of
|
|
June 28, 2010
|
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BBVA U.S. Senior,
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/s/ Ricardo Marine
|
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S.A. Unipersonal in the United States
|
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Ricardo Marine
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81
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, BBVA Subordinated
Capital, S.A. Unipersonal certifies that it has reasonable grounds to believe that it meets all of
the requirements for filing on Form F-3 and has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized in Spain, on June 28, 2010.
|
|
|
|
|
|
BBVA SUBORDINATED CAPITAL, S.A. UNIPERSONAL
|
|
|
By:
|
/s/ Pedro M
a
Urresti Laca
|
|
|
|
Name:
|
Pedro M
a
Urresti Laca
|
|
|
|
Title: Chairman of the Board of Directors
|
|
|
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS that each of the individuals whose signature appears below
(whether as a member of the board of directors or officer of BBVA Subordinated Capital, S.A.
Unipersonal, as authorized representative of BBVA Subordinated Capital, S.A. Unipersonal or
otherwise) constitutes and appoints Pedro M
a
Urresti Laca, Juan Isusi Garteiz Gogeascoa, Antonio
Borraz Peralta, Francisco Javier Colomer Betoret and Raul Moreno Carnero and each of them, his or
her true and lawful attorneys-in-fact and agent, with full and several power of substitution, for
him or her and in his or her name, place and stead, in any and all capacities, to sign any and all
amendments (including post-effective amendments) and supplements to this registration statement or
any registration statement in connection herewith that is to be effective upon filing pursuant to
Rule 462(b) under the Securities Act of 1933, as amended (the Securities Act), and to file the
same, with all exhibits thereto, and all documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully for all intents and purposes as he or she might or could do in
person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them,
or their substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the dates indicated.
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Pedro M
a
Urresti Laca
|
|
Chairman of the Board of
|
|
June 28, 2010
|
|
|
|
|
|
Pedro M
a
Urresti Laca
|
|
Directors and Director
|
|
|
|
|
|
|
|
/s/ Ana Fernández Manrique
|
|
Director
|
|
June 28, 2010
|
|
|
|
|
|
Ana Fernández Manrique
|
|
|
|
|
|
|
|
|
|
/s/ Juan Isusi Garteiz Gogeascoa
|
|
Director
|
|
June 28, 2010
|
|
|
|
|
|
Juan Isusi Garteiz Gogeascoa
|
|
|
|
|
|
|
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|
|
/s/ Raúl Moreno Carnero
|
|
Director
|
|
June 28, 2010
|
|
|
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|
|
Raúl Moreno Carnero
|
|
|
|
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|
|
|
|
|
/c/ Juan Carlos García Pérez
|
|
Director
|
|
June 28, 2010
|
|
|
|
|
|
Juan Carlos García Pérez
|
|
|
|
|
82
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Tomás Sánchez Zabala
|
|
Director
|
|
June 28, 2010
|
|
|
|
|
|
Tomás Sánchez Zabala
|
|
|
|
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|
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/s/ Francisco Javier Colomer Betoret
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Director
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June 28, 2010
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Francisco Javier Colomer Betoret
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Authorized Representative
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June 28, 2010
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of BBVA Subordinated
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Capital, S.A. Unipersonal
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/s/ Ricardo Marine
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in the United States
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Ricardo Marine
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83
EXHIBIT INDEX
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Number
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Description
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Incorporated by Reference to Filings Indicated
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1.1
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Form of Underwriting Agreement for Ordinary
Shares
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**
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1.2
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Form of Underwriting Agreement for Preferred
Securities
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*
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1.3
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Form of Underwriting Agreement for Senior Notes
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*
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1.4
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Form of Underwriting Agreement for
Subordinated Notes
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*
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3.1
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Amended and Restated bylaws (
Estatutos
) of
Banco Bilbao Vizcaya Argentaria, S.A. (English
translation)
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Exhibit 1.1 to Banco Bilbao Vizcaya
Argentaria, S.A.s 2009 Annual Report on Form
20-F filed on March 29, 2010
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3.2
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Bylaws (
Estatutos
) of BBVA International
Preferred, S.A. Unipersonal (English
translation)
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*
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3.3
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Bylaws (
Estatutos
) of BBVA U.S. Senior, S.A.
Unipersonal (English translation)
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*
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3.4
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Bylaws (
Estatutos
) of BBVA Subordinated
Capital, S.A. Unipersonal (English
translation)
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*
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4.1
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Form of Amended and Restated Deposit Agreement
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Exhibit 1 to registration statement on Form
F-6 (File No. 333-142862), filed on May 11,
2007
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4.2
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Form of Preferred Security
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**
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4.3
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Form of Preferred Security Guarantee
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**
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4.4
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Form of Issuing and Paying Agency Agreement
for Preferred Securities
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**
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4.5
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Regulations of the Syndicate of BBVA
International Preferred S.A. Unipersonal
Preferred Security Holders
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**
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4.6
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Senior Indenture among BBVA U.S. Senior, S.A.
Unipersonal, as Issuer, Banco Bilbao Vizcaya
Argentaria, S.A. as Guarantor, and The Bank of
New York Mellon, as Trustee, including the
form of Senior Guarantee and form of
Regulations of the Syndicate of Senior Note
Holders
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*
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4.7
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Form of Senior Notes
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*
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4.8
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Subordinated Indenture among BBVA Subordinated
Capital, S.A. Unipersonal, as Issuer, Banco
Bilbao Vizcaya Argentaria, S.A. as Guarantor,
and The Bank of New York Mellon, as Trustee,
including the form of Subordinated Guarantee
and form of Regulations of the Syndicate of
Subordinated Note Holders
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*
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84
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Number
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Description
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Incorporated by Reference to Filings Indicated
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4.9
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Form of Subordinated Notes
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*
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5.1
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Opinion of J&A Garrigues S.L.P. as to the
validity of the ordinary shares, the rights,
the preferred securities, the senior notes,
the subordinated notes, the preferred
securities guarantees, the senior guarantees
and the subordinated guarantees
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*
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5.2
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Opinion of Davis Polk & Wardwell LLP as to the
senior notes and the subordinated notes
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*
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12
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Statement Regarding Computation of Ratios
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*
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23.1
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Consent of Deloitte, S.L.
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*
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23.2
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Consent of J&A Garrigues S.L.P. (included in
Exhibit 5.1)
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23.3
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Consent of Davis Polk & Wardwell LLP (included in
Exhibit 5.2)
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24.1
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Power of Attorney of Banco Bilbao Vizcaya
Argentaria, S.A. (included in BBVA signature
page)
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24.2
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Power of Attorney of BBVA International
Preferred, S.A. Unipersonal (included on BBVA
International Preferred, S.A. Unipersonal
signature page)
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24.3
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Power of Attorney of BBVA U.S. Senior, S.A.
Unipersonal (included on BBVA U.S. Senior,
S.A. Unipersonal signature page)
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24.4
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Power of Attorney of BBVA Subordinated
Capital, S.A. Unipersonal (included on BBVA
Subordinated Capital, S.A. Unipersonal
signature page)
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25.1
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Statement of Eligibility on Form T-1 of The
Bank of New York Mellon, as trustee under the
senior indenture
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*
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25.2
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Statement of Eligibility on Form T-1 of the
Bank of New York Mellon, as trustee under the
subordinated indenture
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*
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*
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Filed herewith.
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**
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To be filed by amendment or incorporated by reference to a subsequently filed Form 6-K.
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85