LONDON, March 5 (IFR) - Banco Santander has attracted in
excess of EUR13bn of demand for an inaugural Additional Tier 1
issue as the market for high-risk loss absorbing bank bonds hots
The Spanish bank began marketing the perpetual non-call
five-year deal on Wednesday morning with initial price thoughts
of mid to high 6%, but this has been revised tighter to
6.25%-6.5% on the back of the overwhelming demand. The
transaction will price within that range, and books will go
subject at 9:30am UK time.
The bank is rated Baa1/BBB/BBB+ by Moody's/S&P/Fitch, with
the notes expected to be Ba2 by Moody's. The bond will convert
into shares if the bank's Common Equity Tier 1 (CET1) ratio
falls below 5.125% at the bank or group level.
As of the end of 2013, Santander's CET1 ratio stood at
10.45% at the group and 12.26% at the bank level.
The lead managers are Bank of America Merrill Lynch,
Citigroup, Santander and UBS.
(Reporting by Helene Durand, editing by Julian Baker)