Spanish banks are extending the fixed‑rate tenor of high‑risk debt to shield capital costs for up to ten years amid robust demandExecutive summary: The bank has doubled the average duration of its high‑risk debt, extending the fixed‑rate period up to ten years. It allows the bank to lock in financing costs for a longer horizon, reducing exposure to funding cost spikes. Santander, BBVA and Unicaja are mentioned as beneficiaries of the market environment. Other banks are expected to follow suit, and regulators may monitor the trend for systemic implications.The bank announced that strong investor demand has driven down spreads on ‘cocos’ bonds to historic lows, enabling it to lengthen the fixed‑rate period of its riskiest debt to a decade. This move aims to lock in financing costs and improve capital‑cost efficiency. Santander, BBVA and Unicaja are positioned to benefit from the favourable market conditions.Connected developmentsLegora warns investors against unapproved share tradesOpen the full case file on Beyond →
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