Santander Issues €3 Bn in Covered Bonds

13/11/2014 – Cinco Dias

Banco Santander has successfully allocated a covered bond issue for €3 billion total. As the Europa Press newspaper informed, the amount is split between 10-year bonds (a €1.75 billion worth) and 20-year debt securities (€1.25 billion).

The bank chaired by Ana Botin named Barclays, Nomura, Natixis and it itself as underwriters for the operation.

The price for 10-year bonds closed at 23 bps over the mid-swap, and for 20-year securities it fixed at 43 bps over the mid-swap, as this issue was a longer-run one.

The issue by Banco Santander coincides with the new guaranteed bonds purchase program by the European Central Bank (ECB) aiming at stimulating credit flow to companies and households in the eurozone. Also, the entity led by Mario Draghi scheduled an asset-backed securities (ABS) purchase scheme for November.


Original article: Cinco Días

Translation: AURA REE