Mexico's Banamex reportedly markets risky debt ahead of Citi split
C•Banamex is reportedly marketing its first sale of high-risk U.S.-dollar perpetual bonds as it prepares to become independent from Citigroup. The AT1 notes are expected to carry a non-investment-grade rating and could be written off if the bank's capital falls below a specified level.
1. Debt sale details
The bond offering is part of Banamex's strategy to build a standalone balance sheet and broaden its international investor base. It follows a $1.3 billion debt sale in May, its first in decades.
2. Citi ownership transition
Citigroup recently sold a 49% stake in Banamex to a group that includes Fernando Chico Pardo, Blackstone and General Atlantic. Citigroup retains 51%, which it is expected to sell through an initial public offering in 2027, and is serving as global coordinator and active bookrunner for the bond deal.
