When Banco Santander sneezes, Europe catches cold. So when, last November, the eurozone’s largest bank, announced a €7.2bn rights issue, only days after saying it was not considering a capital increase, the markets braced themselves for the worst. But unlike several casualties of the European rights issue jamboree, Santander’s swift, albeit unexpected, action helped ensure the success of its capital raising. “This demonstrates Banco Santander’s ability to act quickly, strengthening its core capital to approximately 7%, which is especially important in the current economic scenario,” says chairman Emilio Botín.
Capital dilution
