Information on covered mortgage bonds

MATERIAL FACT

Banco Santander, S.A. hereby announces, with respect to the "33th issuance of Banco Español de Crédito, S.A. cédulas hipotecarias (covered mortgage bonds)" (ISIN code ES0413440290) for an amount of one thousand million euros, its intention to redeem and cancel all of the ten thousand covered mortgage bonds for a total nominal value of one thousand million euros on 24th November 2014, the issuance thus being totally redeemed and cancelled as of that date.

All the covered mortgage bonds to be redeemed are owned by Banco Santander, S.A.

Boadilla del Monte (Madrid), 18th November 2014