In the dynamic world of investment banking, issuing a bond is a complex undertaking that demands a carefully crafted strategy and flawless execution. For new issuers, one of the most pivotal moments is, without question, the roadshow. This is a crucial phase in which they seek to spark investor interest in their project, a moment that must be approached with rigour and a long-term vision.
What is a roadshow and why is it so critical?
A roadshow consists of a series of meetings held in financial capitals such as Paris, London or Frankfurt, where the issuer presents their value proposition directly to potential institutional investors. Far from being a mere presentation, these meetings are a unique opportunity for issuers to connect personally with the investment community, convey their story, and build the confidence required to secure the capital they need.
There are various types of roadshows, depending on the purpose of each meeting. The most common format is linked to a specific issuance, aimed at presenting the transaction currently underway and addressing questions or concerns from the market. Meetings not tied to a transaction are also frequent, with the objective of maintaining an open dialogue with investors and strengthening the issuer’s visibility. In other instances, the primary goal is to update the issuer’s credit profile—particularly relevant when there are significant changes in its financial position or strategic direction.
These meetings take on particular importance in inaugural issuances, where the issuer is accessing the market for the first time, as well as in more complex or innovative transactions, such as those stemming from mergers and acquisitions or the issuance of subordinated instruments. In all cases, the success of a roadshow hinges on a clear narrative, consistent messaging, and a long-term vision aligned with investors’ interests.
Within this framework, the roadshow is structured around three key pillars:
- Engaging investors: This is the moment to ignite interest, build trust, and secure the commitment of key market players. A clear, concise, and compelling narrative is essential to capture investor appetite. For inaugural issuers, or those with limited presence in the market, conducting a roadshow becomes a key tool to facilitate investor approvals and the establishment of credit lines—even prior to the actual issuance.
- Taking the pulse of the market: The roadshow offers real-time insight into how the market perceives the issuer’s risk profile, its appetite for the transaction, and the overall macroeconomic environment. This feedback is vital for refining the strategy and making informed decisions.
- Defining pricing and timing: Direct engagement with investors allows issuers to gauge true market demand, enabling them to define an appropriate pricing corridor and indicative timelines. The goal is to ensure the transaction is attractive both to the issuer and the market.
BBVA CIB’s approach: strategic preparation and expert advisory
At BBVA CIB, the roadshow is characterised by rigorous preparation and a strategy tailored to each transaction. This includes developing clear, visually engaging presentation materials, coaching the executive team to respond effectively to complex questions, and simulating potential scenarios that may arise during the process.
“When it comes to roadshows, it is essential to craft a coherent narrative that conveys a compelling and robust investment story in order to build investor confidence,” explains Reyes Bover, Head of Debt Capital Markets Europe at BBVA CIB. “This means highlighting the company’s strengths, growth potential and unique value proposition.”
“It is essential to craft a coherent narrative that conveys a compelling and robust investment story in order to build investor confidence”
“Another key factor is transparency. Investors value management teams that can discuss both achievements and challenges with equal clarity. At the same time, we anticipate and adapt—we prepare issuers for the toughest questions and help them craft succinct and effective responses,” adds Bover. “Flexibility is also fundamental: if market feedback isn’t favourable, at BBVA CIB we advise issuers on the possibility of postponing the deal. Our aim is long-term success, not just the execution of the transaction.”
In short, a roadshow is far more than a series of meetings—it is a strategic dialogue that can shape the outcome of an issuance. Leveraging its extensive network and in-depth market knowledge, BBVA identifies the most suitable investors for each transaction. In doing so, the bank remains committed to guiding its clients through the entire process with professionalism, expertise, and dedication—ensuring that every roadshow becomes a solid platform for successful capital raising.