BANCO SANTANDER raised US$1.9bn-equivalent in the market last Thursday with an unusual euro and US dollar dual-tranche Additional Tier 1, targeting different investor bases with close tenors. In euros, Santander raised €750m in perpetual non-call seven at 4.125% while stateside the bank raised USS1bn in a perpetual non-call six-year bond at 4.75%. The SEC-registered deal, which is expected to be rated Bal by Moody's, drew some attention for having such similar tenors across different currencies. "Prior to the announcement you'd be surprised to see cross-currency calls so proximate to each other," said a banker away from the leads. "Given there is a decent upside for an issuer in US dollar levels in general, printing two bonds very close can cannibalise one versus the other in places."
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