Issuance of Bonds and Promissory Notes

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Financing solutions for companies

Obtaining resources through bond and promissory note issuances is an alternative form of financing for companies.

The Banco Santander Debt Capital Markets (DCM) departmentffers you financing solutions with no balance consumption through the issuance of bonds and promissory notes.

At Banco Santander we take care of originating the bonds and fixed income obligations for different types of customers.

Governments and Agencies (SSAs).
Companies.
Financial entities.

Depending on the terms, you can choose to issue:

Bonds: these are medium and long-term debt securities, with a pre-established return.
Promissory notes: they are debt securities with short-term maturities. These are securities issued at a discount, with an implicit return or zero coupon, so their profitability is based on the difference between the purchase price and the nominal value of the promissory note received on the amortisation date.

According to the credit rating of corporate issuers:

Investment Grade Issuers External rating > BBB—
High Yield Issuers External rating < BB
Unrated Issuers. No external rating.

In most cases, the issuers supervised by commercial banks will fall into these last two categories.

If you go to Banco Santander to issue your company's bonds, you will have free access to a rating and debt advisory service.

Banco Santander has experience in all types of sophisticated transactions. It is one of the prominent banks in the League tables provided by Dealogic® with a 10% market share. The Santander Debt Capital Markets (DCM) Department closed more than 80 operations during 2018.

How to arrange this financing

If you want to know more about the Issuance of Bonds and Promissory Notes or start using this form of financing in your company, visit any Banco Santander branch.

Shall we discuss it?

If you would like more information, visit any of our branch offices.

FIND A BRANCH OFFICE

FAQs

What is the minimum amount?

The minimum amount for the issuance of bonds and promissory notes will depend on the rating of each issuer, therefore, issuers with a HY rating (BB+ and below) the minimum amount would be around €150 million euros, whereas for IG customers (BBB- and higher) this figure would rise to €250 million.

What terms can be seen in the bond market?

The range of terms is quite extensive, with maturities ranging from 3 to 15 years. This will mostly depend on the type of issuer, therefore, the higher the credit quality of the issuer, the longer the terms it will have access to.

What is the amortisation and interest payment format?

Most bonds are issued in Bullet format (about 95%) and with a fixed coupon, with a floating coupon also being possible, but much less common.

Is it more expensive than other financing options?

Not necessarily. The prices of the different periods of the issuance of the bonds and promissory notes depend both on the customer's rating, as well as on the interest rate levels and market liquidity. This market is quoted daily, therefore it faithfully reflects the price levels that issuers could access adjusted to the conditions in which the market itself values the issuer. This is why prices can be below or above other products depending on market conditions.

Are there different types of issuances?

Yes.

Depending on the type of issuer: corporate, financial or public sector or SSAs.
According to the placement format: public issues or private placements.
According to the documentation used: under the European Medium Term Note (EMTN) program, Stand-Alone or the National Securities Market Commission (CNMV).
Depending on the type of asset: the most common is unsecured senior debt but we also see secured, subordinated and hybrid issues.

Shall we discuss it?

If you would like more information, visit any of our branch offices.

FIND A BRANCH OFFICE