Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 227

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 227
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 certain environmental metrics, not requiring 
 any specific destination for the funds, the purpose of the adjustment being to incentivise the achievement of those targets. The key consideration here is whether the resulting cash flows reflect a return for risk that is unrelated to a basic                                                                 
 lending arrangement. Thus, if the adjustment linked to ESG targets does not introduce compensation for risks that is inconsistent with a basic lending arrangement, or if it does so only residually, then it is considered that the financial asset has                                                           
 contractual cash flows that are compatible with a basic lending arrangement. As at 31 December 2024 and 2023, the impacts of environmental clauses on the interest rate applied to transactions whose remuneration is linked to ESG targets are                                                                    
 considered to be residual for the purposes of the SPPI test. Similarly, in general terms, those financing transactions do not include other characteristics that could call into question their status as basic lending arrangements.                                                                              |

| • |     | Other clauses that could change the timing or amount of cash flows: clauses that could alter contractual cash flows as 
 a result of changes in credit risk are considered to pass the SPPI test.                                               |

| – | Leverage: financial assets with leverage (i.e. those in which the contractual cash flow variability increases, such                          
 that they do not have the same economic characteristics as the interest rate on the principal amount of the transaction) fail the SPPI test. |

| – | Contractually linked financial instruments: the cash flows arising from these types of financial instruments are      
 considered to consist solely of payments of principal and interest on the principal amount outstanding provided that: |

| • |     | the contractual terms of the tranche being assessed for classification (without looking through to the underlying pool                    
 of financial instruments) give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding; |

| • |     | the underlying pool of financial instruments contains instruments with contractual cash flows that are solely payments 
 of principal and interest on the principal amount outstanding; and                                                     |

| • |     | the exposure to credit risk corresponding to the tranche being assessed is equal to or lower than the exposure to 
 credit risk of the underlying pool of financial instruments.                                                      |

| – | Non-recourse financial assets: in the case of debt instruments that are                                                                                                                                                                             
 primarily repaid with cash flows from specified assets or projects and for which there is no personal liability for the holder, an assessment is made of the underlying assets or cash flows to determine whether the contractual