MADRID, Feb 17 (Reuters) - Spain’s market regulator has fined Santander, the euro zone’s largest bank by market value, a total of 16.9 million euros ($23.1 million) over its sale of convertible bonds to clients in 2007.
Stock market regulator CNMV said Santander made two serious infractions for not providing clients enough information about the instrument, which raised 7 billion euros ($9.6 billion) in two weeks, and levied two fines as a result.
Santander said on Monday that Spain’s High Court has agreed to hear its appeal against the fine. The bank said the instrument had the regulator’s backing when it was introduced in 2007.
The CNMV declined to comment.
The bond was paying a 4.8 percent fixed return until it was converted into shares of Santander in 2012, when the bank’s share price was hovering near historical lows.
The penalty is not firm until the appeals process is finalised. ($1 = 0.7307 euros) (Reporting by Tracy Rucinski; Editing by Erica Billingham)