Issue of MortgageBacked Bonds

Banco Santander Central Hispano SA
06 March 2003



    SANTANDER CENTRAL HISPANO LAUNCHES A NEW ISSUE OF MORTGAGE-BACKED BONDS
                                  ('CEDULAS')


Madrid, March 6th 2003. Santander Central Hispano has launched its second issue
of Mortgage-Backed Bonds ('Cedulas'), aimed at advancing the diversification of
the Group's international investor base in a strongly developing market with
ever-increasing financing needs.

Thanks to its volume and liquidity, the 1,500 million euro, 3-year issue will
become a bond of reference for the European market in securities of this type.
The annual nominal issue coupon is 2.75% and the maturity date is March 12th
2006.

The operation forms part of the global financing strategy of Santander Central
Hispano, present in the capital markets through multiple instruments in order to
ensure a favourable liquidity position and a wide investor base. The lead
managers of the operation were CDC Ixis, Commerzbank and Morgan Stanley,
co-ordinated by Santander Central Hispano. Dresdner Bank, Credit Agricole
Indosuez and HSBC also participated. The issuer will apply for the bonds to be
listed on the AIAF market. A Moody's rating of Aa2 is expected for the
operation.

The mortgage-backed bonds ('Cedulas') are a high credit-quality product designed
for financing the mortgage portfolios of financial institutions, which in the
case of Santander Central Hispano, amount to over 24,000 million euros. The Bank
has been the most active institution in the securitisation of assets of this
type as a funding and capital management channel.


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