Santander Plans Risk Transfer Deal Amid M&A Push in the US (1)

Banco Santander SA, the Spanish lender expanding via acquisitions in US and the UK, is planning to issue a significant risk transfer tied to a pool of over £1 billion ($1.4 billion) loans.

The potential deal would reference a portfolio of loans made to small and mid-sized companies by Santander’s UK division, according to people familiar with the matter. Final terms of the SRT deal, which would fall under the bank’s Colossus program, are subject to discussions with the investors, said the people, who asked not to be identified because the matter is private.

Santander, Spain’s biggest bank and ...