Corporate ActionMay 28, 2026, 06:07 AM
Banco Santander Completes $1.5B CoCos Placement at 7.25%
AI Summary
Banco Santander, S.A. announced the completion of a $1.5 billion placement of preferred securities contingently convertible into ordinary shares (CoCos). The placement was carried out through an accelerated book-building process targeting professional investors. These CoCos will be eligible as additional tier 1 capital and offer a remuneration of 7.25% annually for the first 10 years, with a conversion trigger if the CET1 ratio falls below 5.125%.
Key Highlights
- Completed placement of $1.5 billion in preferred securities contingently convertible into ordinary shares (CoCos).
- CoCos are eligible as additional tier 1 capital under Regulation (EU) No. 575/2013 (CRR).
- Remuneration for the CoCos is set at 7.25% on an annual basis for the first 10 years.
- CoCos convert into ordinary shares if the CET1 ratio falls below 5.125%.
- Consolidated CET1 ratio was 14.4% as of March 31, 2026.
- Bank will request admission of the CoCos to trading on the New York Stock Exchange.
Price Impact
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