Santander Holdings raises $500M in preferred stock from parent bank
What's the deal? Santander Holdings USADealroom has a profile for this one. Try Dealroom → has raised $500 million through a private placement of newly created perpetual preferred stock to its parent, Banco SantanderDealroom has a profile for this one. Try Dealroom →. The company issued 500,000 shares of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J, at a $1,000 per share liquidation preference.
Why now? The purchase agreement was signed on August 25, 2026, and the transaction closed two days later, on August 27. Raising capital from a parent is a common way for a bank holding company to strengthen its balance sheet and meet regulatory capital requirements.
What are the terms? The Series J shares carry a fixed annual dividend of 7.271% through December 20, 2031. After that, the rate resets quarterly to the five-year US Treasury rate plus a 2.979% spread.
The shares are perpetual, with no maturity date, and non-cumulative, meaning dividends do not accrue if the board does not declare them. Santander Holdings can redeem them on or after December 21, 2031, or earlier under certain regulatory events, subject to Federal Reserve approval.
What's the endgame? The raise bolsters Santander Holdings USA's capital position by $500 million. Its perpetual structure provides a permanent capital base that can support lending and other business activities.
The signal: Intra-group capital injections like this one let banks reinforce their US units without tapping outside markets. By funding from within, Santander keeps regulatory buffers intact while retaining full control over its American holding company.
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