Santander's exchange offer sees 55% take-up

Santander announced the results of its exchange offer yesterday. According to its filing at the London Stock Exchange, the aggregate participation rate for the exchange offer was around 54%.

BNP Paribas’ research today notes that the individual participation rates were as follows: 66% for the sterling-denominated upper tier-two, 65% for the sterling-denominated tier-one, 50% for the euro-denominated upper tier-two, 26% for the euro-denominated tier-one, and finally 0% for the yen-denominated upper tier-two.

Analysts comment that the sterling investors, who are taking extension risk more seiously than their euro-counterparts, most likely viewed that the prospect of a call was worth the 25% discount on the new bonds.