Trading in Santander suspended as it raises $8.8B

Spain's Santander, the euro zone's largest bank by market value, said on Thursday that it would raise 7.5 billion euros ($8.82 billion) in capital through an accelerated placement, and added that it was changing its dividend policy.

The share sale is worth 9.9 percent of the company's capital before the issuance. The bank said it would pay 0.20 euros per share in dividends against 2015 earnings, of which 0.15 euros per share would be in cash, after a total payment of 0.60 euro per share against 2014 earnings.

Bank of Santander Headquarters
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Bank of Santander Headquarters

Spain stock market regulator suspended trading in the bank's shares shortly before the announcement.

The bank has lined up Goldman Sachs and UBS to run a capital hike, a source familiar with the matter said on Thursday according to Reuters.

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