News INTERESSANTE call SANTANDER
UPDATE 1-Santander subordinated bond redemption delayed
(Adds trader comment)
LONDON, Sept 1 (Reuters) - Santander <SAN.MC> will not
exercise an option to redeem a 500 million euro ($718 million)
Lower Tier 2 bond as scheduled due to administrative reasons,
the Spanish bank said on Tuesday.
"Santander's intention is to call it as soon as possible
following the proper authorisations, expected in the short term
and in line with the calendar of the issuance," an official of
the bank said.
Subordinated bonds typically have "call" dates when the
borrower has an option to redeem them before the final maturity
date.
Santander's Lower Tier 2 bond was issued on Sept. 30 2004
and has a maturity date of Sept. 30 2014.
The first call date on the bond was Sept. 30, according to
one trade source.
Traders said they believed the bond would now be redeemed in
December.
"This has created a little bit of noise," said one, but he
said there was not too much impact on Santander subordinated
bond spreads in a market where spreads were generally wider.
(Reporting by Paul Day in Madrid and Jane Merriman in London;
Editing by David Holmes)
($1=.6964 Euro)
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Keywords: SANTANDER/BOND
15:22
