Key facts
- Banorte raised $1.35 billion in a hybrid debt sale.
- The debt was issued in two tranches of perpetual additional tier 1 (AT1) notes.
- The sale highlights investor demand for higher-yielding bank debt from Latin America.
Mexican financial group Banorte has successfully raised $1.35 billion through a hybrid debt sale. The issuance comprised two tranches of perpetual additional tier 1 (AT1) notes. This significant capital raise highlights the robust demand from investors for higher-yielding bank debt, particularly from Latin American issuers. The deal signifies Banorte's capacity to access international capital markets, bolstering its financial resources and market position. The AT1 notes are designed to absorb losses in times of stress, making them a key component of a bank's capital structure. Their perpetual nature means they do not have a maturity date, though they typically include call options after a certain period. The success of this sale indicates confidence in Banorte's financial health and its future prospects within the Mexican and broader Latin American banking sector.