Spanish bank Santander has registered with Spain's securities regulator to issue up to 7.5 billion euros ($10.3 billion) of commercial paper. Santander, the world's eighth largest bank by market capitalisation, said in the filing dated Friday that it would sell at least 5 billion euros in 3-month to 18-month paper to retail and institutional clients.
The paper will pay between 3 percent and 3.75 percent depending on the maturity, according to the filing. The minimum investment is 30,000 euros. Santander's long-term debt is rated AA by Fitch, Aa2 by Moody's and AA by Standard & Poor's. With liquidity tight on Europe's interbank market and scarce windows of opportunity to issue covered bonds - due to high borrowing costs related to the eurozone sovereign debt crisis - some Spanish banks have turned to the European Central Bank for short-term loans and have waged a deposit war at home.
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