© Reuters. Santander inaugurates the market for internationalization cards in Spain
Madrid, 8 feb (.).- The Santander Bank (BME:) has closed the first issuance in Spain of internationalization bonds, securitization of loans to companies for their expansion abroad, an unprecedented operation so far in the Spanish market, according to market data consulted by EFE.
The group raised 500 million over a period of 5 years and, thanks to the fact that the demand of a hundred investors reached 2,500 million, the interest to be paid was lowered to 3.25% or what is the same, 38 basis points on the mid-swap, the benchmark for issues of this type.
Initially, the cost was going to be higher, but investor appetite allowed the initial price to be reduced by up to 7 basis points and the difference with the interest at which mortgage bonds are usually issued, securitization of loans for the purchase of housing generally with greater solvency.
After several weeks of analysis of market interest in this type of product, much more common among French and German issuers, Banco Santander announced a virtual round last Monday, in which it explained the operation to 16 investors.
Given the good reception, the group decided to start the operation the next day, Tuesday, of which the details were not known until this Wednesday.
Demand was predominantly from German accounts, but also from Spanish, Italian, British and French investors; and the main buyers were banks and management companies.