Santander Markets $1.5 Billion of CoCos to Meet Capital Rule
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Banco Santander SA is selling $1.5 billion of contingent convertible notes to comply with new capital regulations, in its first sale of the riskiest bank debt in the U.S. currency.
Spain’s biggest bank will price the additional Tier 1 notes to yield 6.375 percent, according to a person with knowledge of the matter, who asked not to be identified because they’re not authorized to speak about it. The undated notes will convert to equity if the bank’s capital falls to 5.125 percent of assets weighted by risk and the company has the right to buy them back after five years, the person said.