Santander CoCo Decision Day as Holders Await Potential Call
- Bank must issue notice Tuesday if it plans to redeem AT1s
- Skipping the call could undermine wider $340 billion market
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Banco Santander SA reached deadline day to call some of its riskiest euro notes, potentially lifting a shadow from a $340 billion corner of the bond market.
The Spanish bank’s 1.5 billion euro ($1.7 billion) issue of contingent convertible is trading around 98.5 cents, suggesting investors are still unsure whether Santander will use an option to redeem the notes at par on March 12. The Additional Tier 1 notes fell as low as 95 cents last month amid general market weakness. Santander must issue a notice on Tuesday if it plans to exercise the call option.