By The Rio Times | Created at 2026-07-20 08:51:22 | Updated at 2026-08-03 22:14:39
2 weeks ago
Mexico · Markets
Key Facts
—The raise. Mexico’s Banorte issued US$1.35 billion in perpetual capital notes on international markets.
—Two tranches. US$600 million at an 8.00% coupon and US$750 million at 8.45%, both Additional Tier 1 instruments.
—The purpose. The notes reinforce regulatory capital under Basel III and absorb losses in stress, without diluting shareholders.
—The ratings. Moody’s rated the securities Ba3 and S&P assigned BB-.
The context. It is one of the larger hybrid-debt sales by a Mexican lender this year.
Mexico’s second-largest bank has tapped global markets to shore up its capital. Banorte capital notes worth US$1.35 billion will strengthen the lender’s buffers under international banking rules.
Grupo Financiero Banorte issued the perpetual notes in two series of Additional Tier 1 instruments, designed to reinforce regulatory capital under Basel III standards, per Mexico Business News.
How the deal is structured
The sale came in two parts: a US$600 million tranche callable after 6.5 years, carrying a fixed 8.00% coupon, and a US$750 million tranche callable after 10 years at 8.45%. Both are perpetual, meaning they have no fixed maturity, a feature that lets them count as core loss-absorbing capital.
Crucially for existing investors, the instruments strengthen capital without issuing new equity, so they do not dilute shareholders. Rating agencies placed the notes below investment grade, with Moody’s at Ba3 and S&P at BB-, reflecting the loss-absorbing nature of the securities rather than the bank’s overall standing.
Why it matters
Basel III requires banks to hold thick capital cushions that can absorb losses in a crisis. By raising this hybrid debt, Banorte tops up those buffers while keeping its equity base intact, a routine but sizeable piece of balance-sheet management for one of Mexico’s most important banks.
For foreign investors, a large, well-subscribed issue is also a signal that Mexican bank credit remains in demand despite wider trade and currency turbulence.
Live Company IntelligenceGrupo Financiero Banorte S.A.B. de C.V — the full investor dossierInside: live share price, market cap, three-year financials, valuation, ESG and peer benchmarks — plus the latest Rio Times coverage.G
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Grupo Financiero Banorte
MX: GFNORTEOGFNORTEFinancial ServicesBanks – Regional35,176 employees
Valuation & profitability
Market cap$502.98B
Revenue (TTM)$141.10B
P / E ratio8.4
Profit margin41.8%
Return on equity23.5%
Price & risk
52-wk low
$141.4752-wk high
$199.00
Beta (volatility)0.15
200-day average$185.04
Revenue trend · 6y
20202025
Latest $247.47B
Ownership
Institutions43.9%
Shares outstanding2.77B
Dividend
No regular dividend — earnings reinvested for growth.
What Grupo Financiero Banorte does. Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. It offers retail banking services, including checking and deposit accounts; credit and debit cards; mortgage, car, payroll, and personal loans; SME loans; payroll accounts; and car, home, life,…
Frequently Asked Questions
How much did Banorte raise?
US$1.35 billion in perpetual Additional Tier 1 capital notes, split into a US$600 million tranche at 8.00% and a US$750 million tranche at 8.45%.
What are the notes for?
To strengthen regulatory capital under Basel III and absorb losses in periods of stress, without diluting existing shareholders.
How were they rated?
Moody’s rated the securities Ba3 and S&P Global assigned BB-, ratings that reflect their loss-absorbing structure.
