UPDATE 1-Santander offers to buy back up to $12 bln of bonds

Wed Mar 6, 2013 6:23am EST

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MADRID, March 6 (Reuters) - Santander on Wednesday said it was offering to buy back a maximum of just over $12 billion in subordinated bonds as the Spanish bank shores up its capital.

The bank said it was carrying out the buybacks to generate capital and better manage future interest payments on its debt, as well as to create liquidity for these bonds in the market.

Its offer included securities in dollars, pounds sterling and euros.

Santander said it was offering to buy back up to 6.5 billion euros ($8.47 billion) of subordinated perpetual bonds and 2.2 billion pounds ($3.33 billion) of similar securities, with a deadline of March 13.

Santander also offered to buy back up to $257 million of subordinated bonds, with the same deadline.

The buyback prices range from between 60 and 103 percent of the face value of the securities for the bonds in euros and pounds. The bank is offering to buy back the dollar issue at 102 percent of face value.

($1 = 0.7677 euros) ($1 = 0.6614 British pounds) (Reporting by Sarah White, Editing by Clare Kane and Jane Merriman)

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