Grupo Santander Central Hispano has issued the first structured loan to the Spanish structured retail market. The product offers borrowers up to €50,000 and includes a derivative that potentially cancels the debt early, clearing the six last instalments of the loan.
Préstamo Fórmula Cero is a five-year loan linked to a basket of five European shares (France Telecom, Total ELF, Nestlé, Iberdrola and BBVA) with an 8.95% interest rate. If all the shares in the basket grow at least 10% during the first four and half years of the loan, the product cancels the last six instalments. The product also includes a three-month no-payment promotional offer.
“Préstamo Fórmula Cero is the first structured loan to be offered in Spain (and probably in Europe) and a very attractive financing tool for our customers because in the end the loan could end up being a very cheap one,” said a spokesperson for the Spanish banking giant.
“The design of innovative products with added value to our clients such as Préstamo Fórmula Cero is part of our wider ‘we want to be your bank’ (Queremos ser tu banco) strategy, with which we want to make Santander the bank of reference for the retail client in Spain.”
This product is available now to Spanish retail clients in all Banco Santander Central Hispano branches. It closes 12 July
This product is available in Recent Additions (Spain).
