White & Case advises Banorte on its US$1.5 billion tier 1 capital notes issuance

Global law firm White & Case LLP has advised Banco Mercantil del Norte, a leading Mexican banking institution, on the issuance of US$1.5 billion of Tier 1 capital notes.

Banco Mercantil del Norte, acting through its Cayman Islands branch, issued notes in two tranches, comprising US$750 million of perpetual 6.5-year callable subordinated non-preferred non-cumulative Tier 1 capital notes; and US$750 million of perpetual 10.5-year callable subordinated non-preferred non-cumulative Tier 1 capital notes, in the international markets under Rule 144A and Regulation S of the US Securities Act of 1933. The notes bear interest at 8.375 percent and 8.750 percent, respectively.

Banorte will use the proceeds of the issuance for general corporate purposes. The transaction, which closed on November 20, 2024, marks Banorte’s eighth and nineth Tier 1 notes issuances since Basel III requirements were implemented in Mexico.

Banorte is the largest bank in Mexico, in terms of total assets, deposits and stockholders' equity, that is not controlled by or affiliated with a non-Mexican financial institution. Through its multi-channel network, Banorte provides a wide range of commercial and retail banking services across the country.

The White & Case Capital Markets team was led by partners John Vetterli (New York), Carlos Mainero and Eduardo Flores (both in Mexico City), and included counsel Henrikki Harsu (New York), and associates Simon Micha Kurc, Alonso Arellano Luna and Viridiana Alanís (all in Mexico City).

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