The Repsol Group, via its affiliate company, Repsol International Capital Limited, has placed a total of 700 million dollars on the U.S. market through its stock issue of guaranteed preference shares. These $25 shares are guaranteed under subordinated terms by Repsol, S.A., and will be quoted on the New York Stock Exchange.

This issue is the first carried out on the U.S. market by a Spanish industrial company, and the largest operation on the U.S. market for guaranteed preference shares to be effected by a non-American issuer. High demand for these shares has made it necessary to increase the offer from the initial 400 to 700 million dollars. These favourable conditions have made possible to fix a dividend yield of this stock of 7.45%.

This issue strengthens Repsol�s financial structure following its large investment outlay over the past 15 months, mainly to consolidate the company�s presence in Latin America, where it is active in all its business areas.

The placement of these guaranteed preference shares began on October 14th last, under the Registration Statement made effective on October 10th, 1997 by the Securities and Exchange Commission.

Rating agencies, Moody�s and Standard & Poor�s, have classifed the issue as aa3 and AA- respectively, equivalent to the rating held for non-subordinated debt.