Banco Mercantil del Norte’s $900 Million Notes Offering


White & Case, Maples and Calder, Gottlieb Steen & Hamilton and Ritch, Mueller, Heather y Nicolau advised on the transaction

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.

White & Case advised Banco Mercantil del Norte, S.A.

In Cayman Islands, Maples and Calder advised Banco Mercantil del Norte, S.A. with Kieran Walsh, Kerry Ann Phillips and Mariana Alves.

Cleary Gottlieb represented Morgan Stanley and UBS as representatives of the initial purchasers with a team including Jorge Juantorena (Picture) Jonathan Mendes de Oliveira, Linda Zang and Jane Song.

Ritch, Mueller, Heather y Nicolau advised the initial purchasers with Luis A. Nicolau and Luis Miguel Posadas.

Involved fees earner: Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Luis Miguel Posadas Yáñez – Ritch, Mueller, Heather y Nicolau, SC; Kieran Walsh – Maples and Calder LLP; Kerry Ann Phillips – Maples and Calder LLP; Mariana Alves – Maples and Calder LLP; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Jonathan Mendes de Oliveira – Cleary Gottlieb Steen & Hamilton; Linda Zang – Cleary Gottlieb Steen & Hamilton; Jane Song – Cleary Gottlieb Steen & Hamilton;

Law Firms: Ritch, Mueller, Heather y Nicolau, SC; Maples and Calder LLP; Cleary Gottlieb Steen & Hamilton;

Clients: Morgan Stanley; UBS; Banco Mercantil del Norte, S.A.;

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Author: Ambrogio Visconti.