Sabadell to cut funding costs after TSB sale
El banco amortizará emisiones de capital por exceso de recursos. El mercado apuesta por la liquidación directa de los 750 millones de su CoCo de 2027. Leer
Banco Sabadell plans to allow 750 million euros of contingent convertible bonds (CoCos) to expire in May 2027 without refinancing them, according to financial sources. This decision would be a first for the bank and is driven by its excess capital, which currently stands at 3.18%, above the required 1.89%. The move is expected to reduce Sabadell's financing costs, as CoCos are a costly form of debt, and would result in an annual interest saving of 37.5 million euros.
The bank's sale of TSB to Santander has reduced its risk-weighted assets and regulatory requirements, allowing it to consider this step.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
