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

05-08-24 0709ET