Banco Santander Central Hispano, the Spanish bank, has sold an 11.6% stake in its subsidiary Banesto, raising €600m ($595m), mainly from retail investors, as part of the bank's plan to rebuild its capital reserves.

The deal had an unusual structure allowing both Santander and Banesto to raise money. Banesto, which is 99%-owned by Santander, launched a rights issue at €7.5 per share, in which Santander sold its rights in the market.