Banco Santander boosts additional Tier 1 capital with $1.5bn CoCo issue
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An update from Banco Santander ( (ES:SAN) ) is now available.
Banco Santander has completed a $1.5 billion issuance of preferred securities contingently convertible into newly issued ordinary shares, targeting professional investors through an accelerated book-build. The instruments, issued at par with an initial 7.25% annual coupon for 10 years and subsequent resets tied to the 5-year U.S. Treasury rate plus a 283.7 basis point margin, are designed to qualify as additional Tier 1 capital under EU prudential rules.
The perpetual CoCos may be called under certain conditions and convert into equity if the bank’s consolidated CET1 ratio falls below 5.125%, well under the 14.4% reported as of 31 March 2026, reinforcing Santander’s capital structure while providing loss-absorbing capacity. Santander plans to list the CoCos on the New York Stock Exchange and has published directors’ reports on conversion terms and the exclusion of pre-emptive rights, underscoring its continued use of capital markets to optimise regulatory capital and meet evolving supervisory requirements.
More about Banco Santander
Banco Santander is a global banking and financial services group headquartered in Spain, offering retail and commercial banking, corporate and investment banking, and wealth management. The bank has a significant international presence, particularly in Europe and the Americas, and focuses on maintaining robust regulatory capital levels to support its lending and capital markets activities.
Learn more about SAN stock on TipRanks’ Stock Analysis page.
