September 12, 2017 / 1:48 PM / 9 months ago

Spain's Santander to raise up to 981 mln euros in subordinated debt

MADRID, Sept 12 (Reuters) - Spain’s Banco Santander registered on Tuesday a prospectus to raise up to 981 million euros ($1.2 billion) in subordinated debt as part of a commercial offer to compensate some retail clients who acquired shares and subordinated debt of Banco Popular and were wiped out when the bank was wound down.

Popular was taken over by Santander on June 7 for the symbolic price of one euro after European authorities stepped in to prevent its collapse.

When the bank first unveiled details of its compensation offer, it said it was planning to issue up to 980 million euros in subordinated debt.

Santander said then that the plan excluded institutional investors and was directed at retail clients who acquired shares from May 26 to June 21 of 2016, during the period of Banco Popular’s last capital increase of around 2.5 billion euros.

It would also include retail clients who acquired subordinated obligations computable as Tier 2 of the July 29, 2011 and Oct. 14, 2011 issues of Popular.

In order to benefit from the offer, customers would be required to waive the right to pursue legal action against Santander, the lender said.

Santander said on Tuesday in its prospectus clients have until December 15 to accept the commercial offer. ($1 = 0.8376 euros) (Reporting By Jesús Aguado and Carlos Ruano; editing by Sonya Dowsett)

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