Santander Launches New EUR 7% Coupon Additional Tier 1 Bonds
Miriam Mukuru
Spanish bank Banco Santander launched a new euro-denominated additional tier 1, or AT1, bond, it said on Tuesday.
AT1 bonds are high-risk debt instruments issued by banks that act as loss absorbers if a bank's capital levels fall below a certain threshold.
The new AT1 bond is a six-year perpetual non-call bond with a 7% coupon rate. Its first call period is from Nov. 20, 2029, to May 20, 2030.
The AT1 bond is convertible into equity if the bank's common equity tier 1 capital ratio were to fall below 5.125%, the bank said.
"Santander announces that it will request the admission to listing of the new [AT1 bonds] on the Global Exchange Market of Euronext Dublin," it said.
The bank simultaneously launched a cash tender offer for its 4.75% EUR1.5 billion AT1 bonds callable in March 2025.
The offer commenced on May 7 and will expire on May 15, and settlement is expected to happen on May 20, Santander said.
Write to Miriam Mukuru at miriam.mukuru@wsj.com
(END) Dow Jones Newswires
May 08, 2024 07:09 ET (11:09 GMT)
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