Redemption of Shares

Banco Santander Central Hispano SA
18 February 2002


                         MATERIAL FACT

Banco Santander Central Hispano, S.A. hereby notifies the resolution adopted by 
the Board of Directors of BSCH Finance Limited (previously, Santander Finance 
Limited), on January 18th 2002 to redeem in advance all of the 'C', 'D' and 'E' 
Series preference shares issued by such institution, amounting to 200 million 
U.S. dollars each.

BSCH Finance Limited is a company incorporated under the laws of the Cayman 
Islands. 

The redemption of the three issuances will be carried out on February 26th 2002.

The Bank of Spain, within its sphere of competence regarding the supervision of 
the solvency of credit institutions, has authorised the aforementioned 
redemptions.


                                                  Madrid, February 18th 2002



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