Santander Selects GlobeTax for its Bond Voluntary Disclosure Program

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GlobeTax will be administering the Voluntary Disclosure Program for Santander’s US debt through the implementation of their cutting edge ESP system. ESP - powered by GlobeTax, is the preeminent system for inbound filings for relief from and reclaim of withholding tax, for income events on international equities and debt securities.

GlobeTax today announced its appointment as agent for Grupo Santander to administer their Voluntary Disclosure Program (VDP) for bonds and commercial paper. The initial agreement between Grupo Santander and GlobeTax will cover five of the group’s Issuing companies: Santander US Debt SA Unipersonal, Santander Issuances SA Unipersonal, Santander Commercial Paper SA Unipersonal, Santander Perpetual SA and Santander Finance Preferred SA Unipersonal. Services will commence on July 1st 2013 and cover payments since February 1st 2013.

Santander is one of the largest issuers of bonds and Commercial Paper in Spain. Collecting and processing all the disclosure documentation and data is a challenge for most issuers. The VDP extends all the way down the financial chain.

Santander has appointed GlobeTax to administer the VDP for specified debt instruments held via accounts at the DTC and ICSDs. GlobeTax will be deploying its automated electronic submission portal – ESP(Bonds) for this purpose.

ESP(Bonds) allows DTC Participants, ICSDs and their downstream intermediaries to provide their disclosure documentation in a fast, secure and easy way. The system enables these intermediaries to cooperate with Santander more efficiently and allows Santander to provide its information reports and returns to the Spanish tax authority.

Ross McGill, Managing Director of GlobeTax said, “We are delighted to have been chosen as Santander’s agent for this program. ESP was established in 2009 to service the global equities market for depositary receipts (DRs). DRs are issued by the four American Depositary banks and distributed to Participant financial institutions of the DTC. In this role ESP has been an extremely robust and successful solution. ESP(Bonds) forms part of our broader strategy to increase levels of automation for financial institutions in complex cross border tax issues and to encourage the use of standards.”

GlobeTax specializes in cross border tax reclamation and has an advanced infrastructure that allows data and documentation to be submitted via a number of electronic portals. As a result, GlobeTax is uniquely placed to offer data acquisition and reconciliation services to the global debt markets.

Brett Lewis, Director of GlobeTax with responsibility for ESP said, “The focus of the Spanish VDP is solely on disclosure of Spanish resident holders because, from a tax perspective, these instruments are currently exempt from withholding. However, other debt markets have a variety of models. At present, around 5% of Eurobonds are subject to withholding tax, a number that is expected to increase*. ESP is the only independent portal covering both debt and equities that will solicit, validate and reconcile all of the data and documents needed for complex withholding tax processes.”

GlobeTax is the leading provider of cross border withholding tax research, relief, recovery and tax information reporting services for financial institutions and investors.

For more information please contact:
Brett Lewis +1 212 747 9100 or
Ross McGill +44 (0)20 7096 2162

  • Source: International Capital Markets Services Association (ICMSA)

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Len Lipton
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