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Friday, 15 December 2017

UBS, Citi set to run Santander €7bn rights issue - sources

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UBS and Citigroup are set to be lead bookrunners on Santander’s €7bn rights issue that is part of the Spanish bank’s takeover of Banco Popular, people with knowledge of the matter said.

Santander said on Wednesday it plans to raise €7bn to provide provisions to cover losses on Popular’s balance sheet. It said the issue will be underwritten, but gave no further details and has not yet launched it.

UBS and Citigroup will provide a volume underwrite, with fees expected to be in the range of 1.5%-2%.

The people said more banks are expected to be added to the roster for such a large deal. That could include Goldman Sachs, which has often advised Santander in the past.

UBS has had a leading role on many past Santander issues and deals. For Santander’s €7.5bn fundraising in January 2015, shortly after the appointment of Ana Botin as chairman, it chose UBS and Goldman as joint bookrunners and underwriters. That was via an accelerated bookbuild, rather than a rights issue.

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