Santander to Redeem €1 Billion AT1 After Skipping First Call (1)

Banco Santander SA is redeeming €1 billion ($1.1 billion) in additional tier 1 bonds, three months after having skipped the first call on the notes.

The optional redemption of the bonds, also known as contingent convertibles, will occur on Dec. 29, the Madrid-based bank said Wednesday. The bonds were issued in 2017.

The redemption comes a week after Santander raised$2.5 billion in two new AT1 bonds, with both yielding 9.625%, according to a person familiar with the matter. Banks rely on these type of securities as a crucial capital buffer. They are perpetual, but investors typically expect them ...