Banorte’s $500 Million Offering

Cleary Gottlieb represented Goldman Sachs, BofA Securities, Credit Suisse, and MUFG, as initial purchasers, in a 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 $500 million 8.375% perpetual 10-year callable subordinated non-preferred non-cumulative Tier 1 capital notes. The transaction priced on July 9, 2020, and closed on July 14, 2020.

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. 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 third Tier 1 issuance since Basel III requirements were implemented in Mexico.