Mexican lender Banorte BMV:GFNORTE/O said Wednesday it raised $1.35 billion in international markets through the sale of hybrid debt, in a deal that underscores investor appetite for higher-yielding bank paper from Latin America.
The bank said the sale was split into two tranches of perpetual additional tier 1 (AT1) notes: $600 million callable after 6.5 years with an 8.0% coupon, and $750 million callable after 10 years with an 8.45% coupon.
The issue "sought to capture what management described as an opportunistic window," financial outlet IFR reported on Friday.
According to the bank's roadshow presentation cited by IFR, the two-part structure helps smooth its call schedule.
Banorte shares closed down about 1.5% on Wednesday after the issue was announced.