Banorte secures $1.35 billion in international hybrid debt sale

The offering was divided into two distinct parts to manage the bank's long-term call schedule. The first tranche consists of $600 million in notes callable after 6.5 years with an 8.0% coupon, while the second tranche totals $750 million with a 10-year call option and an 8.45% coupon. Management described the timing as an opportunistic move to lock in liquidity while demand for regional financial instruments remains robust.

Despite the successful capital raise, market reaction was muted. Shares of the lender fell approximately 1.5% on Wednesday following the announcement of the debt issue. The transaction highlights the ongoing strategy of major Mexican financial institutions to leverage international markets for growth capital, balancing higher interest obligations against the need for strengthened tier 1 capital buffers.