According to the Financial Times, sources close to Santander have suggested that the Spanish lender will aim to list 20% of its UK division, made up of Abbey, Alliance & Leicester and the savings business of Bradford & Bingley, in order to fund its recent acquisition spree.
This includes its bid for the 318 branches of RBS currently up for sale in the UK, which could cost Santander between £1.5bn to £1.8bn.
The listing would mirror the $7bn IPO of part of Santander’s Brazilian subsidiary last year.
Ray Boulger, senior technical manager for John Charcol, said: “This is all about raising cash for Santander’s war chest and increasing its UK profile. The Spanish banking sector is under a cloud right now, and having a locally listed subsidiary will give it an advantage when raising credit if things got worse. In the short term, it will not have a significant effect on mortgage lending in the UK.”
Meanwhile, a Santander spokesperson said it would not comment on ‘speculation’.
