Santander bond swap flops

Santander said yesterday only around a fifth of investors had accepted its offer to swap junior bonds into new debt, part of an exchange some of Europe’s biggest investors say will shut the Spanish bank out of future funding markets. The bank said just 23.8 per cent of bondholders had taken up its offer, making it fall far short of its €6.8bn (£5.9bn) target announced last month. “I think it’s unlikely Santander will be able to do any senior unsecured issuance or covered bonds,” said Roger Doig, a credit analyst at funds house Schroders.