Santander Mexico Sub Bond to Shore Up Capital

Santander is preparing to issue as much as $1bn in subordinated bonds, the bank’s Spanish parent says. The planned issue will meet Basel III requirements under for tier 2 capital and is subject to market conditions. Parent Banco Santander intends to purchase 75% of the bonds to ensure the issue’s complete subscription. No additional details were immediately available. The bank is aiming to have a tier 1 capital ratio of at least 12% and a tier 2 capital ratio of approximately 2.5%.