EFTA Document EFTA01453171

Both are good quality, high yielding, low trigger CoCos These are hybrid bonds that absorb losses when the capital ratio of the issuer falls below a trigger level BBVA and Santander capital ratios (CETI. ratio: 10.5%-11%) are far from the trigger on these CoCos (5.125% for both) Coupons are discretionary and step up to a spread over Sy swap rates if these are not called (in 2019) The likely step up in coupon if these are not called incentivises the issuer to call the bonds we therefore