Banorte’s $1.5 Billion Notes Offering

Cleary Gottlieb represented Goldman Sachs, Barclays, Morgan Stanley, and MUFG, as initial purchasers, in a $1.5 billion Basel III capital offering by Banco Mercantil del Norte S.A., Institución de Banca Múltiple, Grupo Financiero Banorte (Banorte).

The transaction consisted of an offering of $750 million 8.375% perpetual 6.5-year callable subordinated non-preferred non-cumulative Tier 1 capital notes and $750 million 8.750% perpetual 10.5-year callable subordinated non-preferred non-cumulative Tier 1 capital notes. The transaction priced on November 13, 2024, and is scheduled to close on November 20, 2024.

Banorte is the largest bank in Mexico that is not controlled by or affiliated with a non-Mexican financial institution in terms of total assets, deposits, and shareholders’ equity. The bank provides a wide range of financial and related services mainly in Mexico, principally in the areas of commercial and retail banking, long-term savings, and brokerage services. This is Banorte’s fifth and sixth Tier 1 issuance since Basel III requirements were implemented in Mexico.