Spanish bank, Banco Bilbao Vizcaya Argentaria (BBVA), has decreased its borrowing costs from the sale of covered bonds worth €2 billion, Bloomberg reports. The five- year covered bonds are expected to yield 200 basis points over the benchmark mid-swaps rate.

BBVA has cut the indicated spread to 225 from 220 basis points on Feb. 2, 2011. The bank had reduced its risk premium from 225 basis points on Jan. 4, 2011, when it raised €1.5 billion of three-year covered bonds.