Banco Santander SA issued a €1.5 billion senior nonpreferred bond, reportedly intended to qualify toward total loss-absorbing capacity/minimum requirement for own funds and eligible liabilities.

Banco Santander said earlier in January that it will issue up to €57 billion of debt in 2017 and 2018, to comply with new rules designed to keep governments from having to bail out failed lenders.

The note, which matures in February 2022, carries a coupon of 1.375%, Cbonds reported Jan. 27.

The order book totaled about €4.25 billion, Thomson Reuters' IFR reported Jan. 26, citing a lead. The so-called second ranking senior notes were priced at 120 basis point over midswaps, Reuters noted.

Banco Santander, Barclays, HSBC and Natixis acted as book runners on the deal.

Also in January, the Spanish lender issued a €1.25 billion international bond.