Santander confirms ‘irreversible’ decision to call its controversial CoCo

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By Tyler Davies
15 Jan 2020

Banco Santander has followed through on its commitment to call an additional tier one (AT1) bond, after extending the life of the instrument a number of times in 2019. The decision comes as favourable market conditions increased the likelihood that issuers will choose to refinance their contingent capital securities this year.

Santander said in a statement on Wednesday that it had made an “irrevocable decision to carry out the optional early redemption” of its €1.25bn 6.25% AT1 on March 12.

The Spanish bank had spelled out its intention to redeem the bonds last week, when it also ...

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