Banco Santander went to the markets this Tuesday to place three new bonds with various maturities, while indicating that it will redeem early an instrument of 1,500 million that was scheduled to mature in January 2025.

The bank plans to place a four-year bond, another six-year bond and one 10-year bond. The placement entities are, in addition to Santander itself, ABN Amro, Citi, Crédit Agricóle, HSBC, NatWest, Mediobanca and Unicredit.

According to the Bloomberg financial information terminal, demand towards the mid-session has been around 4,000 million euros.

The initial price objective for the four-year bond is around the mid-swap plus a spread of 115 basis points. This paper will not be amortized early until three years have passed.

On the other hand, the six-year bond starts from an initial price of 135 basis points over the ‘mid-swap’, and cannot be redeemed early before five years have passed.

Finally, the bond with maturity in a decade does not have commitments of no early amortization and is being offered at a price of 155 basis points over the ‘mid-swap’.

On the other hand, Santander has reported in a statement sent to the Dublin Stock Exchange that it plans to redeem a senior preferred bond that was scheduled to mature in January 2025 for an amount of 1.5 billion euros.

The early amortization will take place on January 26, 2024. The operation will involve payment to the bondholders of the face value of the bond plus any accrued and unpaid interest.

Likewise, Bolsas y Mercados Españoles (BME) has reported that it has admitted to the AIAF, its fixed income market, a structured bond issuance program from Banco Santander worth 5,000 million euros.

Through this new continuous issuance program, Banco Santander will be able to launch over the next 12 months different tranches of preferred or non-preferred senior bonds that will have flexible structures, with fixed or variable yields, linked to money market indices or other references, such as swap interest rates, inflation indices, exchange rates, etc.

Santander has also issued 20 million euros in commercial paper with a maturity of three months, April 2, 2024.