Economy USA

Santander boosts equity capital with new partners in the United States

MADRID (Reuters) – On Friday Spanish bank Santander announced to strengthen its balance sheet by about a billion dollars (730 million) by integrating new partners in its activities of consumer credit in the United States.

The announcement comes as pressure intensifies on European banks to increase their own funds.

In a document addressed to the regulators, the largest bank in the euro area states want to increase its capital by about $ 1.5 billion in Santander Consumer States.

The transaction values ​​Santander Consumer United States to four billion dollars, according to estimates by the bank.

Last month,according to its chief executive Alfredo Saenz  the bank did not plan to raise equity.

The consortium Sponsor Auto Finance Holdings Series subscribe to the capital increase up to a billion dollars and Dundon DFS up to $ 150 million.

Santander will retain a majority share of 65% in Santander Consumer United States after the operation, Sponsor Series Auto Finance Holdings will own 25% and 10% DFS Dundon.

The consumer credit in the United States is one of the most profitable activities of Santander, analysts reported and generated a net profit of $ 455 million in 2010.

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