BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

The item “Subordinated Liabilities” in the accompanying consolidated balance sheets includes the issue of
convertible subordinated obligations at a value of €2,000 million issued by BBVA in September 2009. These
obligations have a 5% annual coupon, payable quarterly, and can be converted into Bank shares after the
first year, at the Bank’s discretion, at each of the coupon payment dates, and by obligation on the date of
their final maturity date, October 15, 2014. These obligations have been recognized as financial liabilities
given that the number of Bank shares to be delivered is variable. The number of said shares will be that
value at the date of conversion (determined based on the quoted value of the five sessions preceding the
conversion) is equal to the nominal value of the obligations.
23.4.3.2. PREFERRED SECURITIES:
The breakdown by issuer of this heading in the accompanying consolidated balance sheets is as follows:
Millions of Euros
Preferred Securities by Issuer
June December
2010 2009
BBVA International, Ltd. (1) 500 500
BBVA Capital Finance, S.A.U. 2,975 2,975
Banco Provincial, S.A 40 67
BBVA International Preferred, S.A.U. (2) 1,727 1,628
Phoenix Loan Holdings, Inc. 20 18
Total 5,262 5,188
(1) Traded on the Spanish AIAF market,
(2) Traded on the London Stock Exchange and New York Stock Exchanges,
These issues were fully subscribed by third parties outside the Group and are wholly or partially redeemable
at the issuer company’s option after five or ten years from the issue date, depending on the terms of each
issue.
Of the above, the issuances of BBVA International, Ltd., BBVA Capital Finance, S.A.U. and BBVA
International Preferred, S.A.U, are subordinately guaranteed by the Bank.
The breakdown of this heading in the accompanying consolidated balance sheets, disregarding valuation
adjustments, by currency of issuance and interest rate, is disclosed in Appendix VIII.
24. LIABILITIES UNDER INSURANCE CONTRACTS
The breakdown of the balance of this item in the accompanying consolidated balance sheets is as follows:
Millions of Euros
Liabilities under Insurance Contracts
Technical Reserve and Provisions
June
2010
December
2009
Mathematical reserves 6,742 5,994
Provision for unpaid claims reported 768 712
Provisions for unexpired risks and other provisions 558 480
Total 8,068 7,186
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