wednesday, 11 january of 2017

Banco Santander to issue up to 57 billion euros in debt over two years

Spain's Banco Santander (SAN.MC) will issue between 43 billion and 57 billion euros ($45 billion-$60 billion) in debt over the next two years to meet capital targets aimed at enabling systemically important banks to absorb losses, it said on Wednesday.

The euro zone's second largest bank by market value said the funds would help raise its capital ratio above 11 percent by December 2018 from 10.47 percent last September under the strictest criteria, fully-loaded CET1.

The European Central Bank said in November that Santander, Spain's only global systemically important bank (SIFI), had to maintain its regular CET1 ratio above 7.75 percent in 2017. Santander's regular CET1 ratio was 12.44 percent in September.

Santander will issue between 24 billion and 32 billion euros in 2017 and between 19 billion and 25 billion euros in 2018, it said in a statement to the market regulator. Up to 9 billion euros of debt will be in the form of hybrid bonds, which can be converted into equity, it said.

Of the total, its unit Santander Consumer Finance will issue up to 13 billion euros and Santander UK up to 7 billion euros.

A spokeswoman for Santander said the debt issuance was in line with their guidance.

The bank issued 20.5 billion euros of debt in 2016, according to provisional figures.

(Published by Reuters - January 11, 2017)

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