The much anticipated development of Spain's securitization market away from a predominantly mortgage-backed market looks to be gathering pace, with the news that Banco Bilbao Vizcaya Argentaria (BBVA) is working on only the second CLO out of Spain and the first CLO to be funded through the public bond market.

The floating rate issue - backed by corporate loans and lines of credit made to 42 mainly Spanish companies and originated by the former Banco Bilbao Vizcaya - will total e1.115 billion ($1 billion). It is split into five tranches with maturities up to 2014 and called BBVA-1. Preliminary ratings from Standard & Poor's and Fitch IBCA range from AAA to BB.

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