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 BCH Capital Limited on January 18th 2002 to redeem in
advance all of the 'A' Series preference shares issued by such institution, 
amounting to 100 million U.S. dollars.

BCH Capital Limited is a company incorporated under the laws of the Cayman 
Islands.

The redemption of the issuance 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
redemption.

                                                Madrid, February 18th 2002


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