Santander Launches Spain’s First Securitization with Embedded Supranational Guarantee

Cuatrecasas has advised Banco Santander and Santander de Titulización on the "Santander Consumo 11” securitization of receivables arising from consumer loans granted by Banco Santander to individuals residing in Spain.

The fund has issued securitized bonds totaling €1.845 billion, divided into seven classes, and maturing in April 2042. The bonds have been admitted to trading on the Spanish Corporate Debt Market (AIAF) of the Spanish Stock Exchanges and Markets (BME) and registered with Iberclear. The transaction also meets the requirements to qualify as STS (simple, transparent, and standardized) under the European securitization regulations.

Santander Consumo 11 includes two structural innovations that place this transaction at the forefront of securitization and underscore the momentum of the Spanish market. First, it features, for the first time in Spain, an on-demand, embedded guarantee granted by a supranational entity, backing the Class A2 bonds for €400 million. Second, the fund includes a prefunding mechanism totaling €330 million, increasing the potential volume of securitized assets. Together, these features show that securitization is a continuously evolving instrument, capable of accommodating increasingly sophisticated financing solutions.