Banorte’s $1.1 Billion Notes Offering
June 27, 2019
Cleary Gottlieb is representing Goldman Sachs, BofA Merrill Lynch, Morgan Stanley, and MUFG, as initial purchasers, in a debt offering by Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte (Banorte).
The transaction consists of an offering of $600 million 6.75% perpetual 5-year callable subordinated non-preferred non-cumulative Tier 1 capital notes and $500 million 7.5% perpetual 10-year callable subordinated non-preferred non-cumulative Tier 1 capital notes. The transaction priced on June 20, 2019, and closed on June 27, 2019.
Banorte is the second-largest financial services group in Mexico. It provides a wide range of financial and related services mainly in Mexico, principally in the areas of commercial banking, long-term savings, and brokerage services. This is Banorte’s second Tier 1 issuance since Basel III requirements were implemented in Mexico.