Banorte’s $900 Million Tier 1 Notes Offering

Cleary Gottlieb represented Morgan Stanley and UBS as representatives of the initial purchasers in a debt offering by Banco Mercantil del Norte, S.A., Institución de Banca Múltiple, Grupo Financiero Banorte.

The transaction consisted of an offering of $350 million 6.875 percent perpetual five-year callable subordinated non-preferred, non-cumulative Tier 1 capital notes and an offering of $550 million 7.625 percent perpetual 10-year callable subordinated non-preferred, non-cumulative Tier 1 capital notes.

Application will be made to have the notes listed on the Singapore Stock Exchange, and Banorte will use the proceeds of the offering to strengthen its regulatory capital and for general corporate purposes. The transaction priced on June 29, 2017, and closed on July 6, 2017.

Banorte is the third-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 the first Tier 1 issuance by a Mexican bank since Basel III requirements were implemented in Mexico.