White & Case Advises Banco Mercantil del Norte on $1.5 Billion Tier 1 Capital Notes Issuance.

White & Case LLP has advised Banco Mercantil del Norte (Banorte), one of Mexico’s leading banking institutions, in its issuance of US$1.5 billion in Tier 1 capital notes. The issuance, finalized on November 20, 2024, marks a significant milestone for Banorte, which has now issued Tier 1 notes eight times since the adoption of Basel III regulations in Mexico.

The capital notes were issued through Banorte’s Cayman Islands branch in two tranches: 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. These notes, which have interest rates of 8.375 percent and 8.750 percent, respectively, were offered in international markets in accordance with Rule 144A and Regulation S of the US Securities Act of 1933.

The funds raised from this issuance will be allocated for general corporate purposes, strengthening Banorte’s capital structure and supporting its continued growth. As the largest bank in Mexico by total assets, deposits, and stockholders' equity, Banorte plays a crucial role in the Mexican financial landscape, offering a wide range of commercial and retail banking services through its extensive multi-channel network.

White & Case’s Capital Markets team, which advised Banorte throughout this process, was led by partners John Vetterli (New York), Carlos Mainero, and Eduardo Flores (Mexico City). The team also included counsel Henrikki Harsu (New York) and associates Simon Micha Kurc, Alonso Arellano Luna, and Viridiana Alanís (Mexico City). The firm’s expertise in complex international capital markets transactions ensured that Banorte successfully navigated the legal and regulatory requirements for this significant offering.

Grupo Financiero Banorte (GFNorte) is Mexico’s largest financial institution, offering a wide range of services across commercial and retail banking, insurance, pensions, and asset management. Founded in 1899, GFNorte is the leading provider of financial products and services in Mexico, with a significant presence in both the retail and corporate banking sectors. The company is dedicated to delivering comprehensive financial solutions to individuals, businesses, and government entities. Through its subsidiaries, Banorte provides innovative and accessible financial services, aiming to promote economic growth and social development throughout Mexico.

White & Case LLP is a global law firm known for providing high-quality legal services to clients across a broad range of industries. Founded in 1901, the firm has grown to become one of the largest international law firms, with offices in over 40 locations worldwide. White & Case specializes in complex legal matters, including banking and finance, mergers and acquisitions, capital markets, dispute resolution, and regulatory compliance. The firm represents multinational corporations, governments, and financial institutions, offering expertise in cross-border transactions, international litigation, and arbitration. White & Case is renowned for its deep industry knowledge, innovative solutions, and commitment to delivering results for its clients.

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