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Banamex launches its first high-risk bond issue as it prepares to split from Citi
Mexico’s Banamex is launching its first high-risk bond issue as it prepares to separate from its parent, Citigroup.
The bank is offering perpetual bonds denominated in US dollars to build an independent balance sheet and attract more international investors.
These Additional Tier 1 bonds are designed to absorb losses if the bank’s capital falls below a set level, which could reduce investors’ holdings.
The bonds are expected to receive a below-investment-grade, or “junk,” rating.
Citigroup recently sold a 49% stake in Banamex to a group including Fernando Chico Pardo, Blackstone and General Atlantic, but still owns 51%.
Citigroup is expected to sell its remaining stake in a 2027 IPO, as Banamex continues preparing to operate independently.
Banamex is launching its first high-risk bond issue as it prepares to become independent from Citigroup.
The perpetual bonds will be denominated in US dollars and are designed to absorb losses if the bank’s capital falls below a specified level.
The issue is part of Banamex’s effort to build an autonomous balance sheet and expand its international investor base.
The bonds are expected to receive a non-investment-grade rating, according to a report cited by Reuters.
Citigroup retains a 51% stake and is expected to sell it through an initial public offering in 2027.
- Who
- Banamex, the Mexican bank, is issuing the bonds. Citigroup is coordinating the deal.
- What
- Banamex is launching its first perpetual Additional Tier 1 bonds, a type of high-risk debt designed to absorb losses.
- When
- The launch was reported on October 14, 2026. The sources do not give a specific issue date.
- Where
- The bonds are denominated in US dollars. The sources do not state where they will be issued.
- Why
- Banamex aims to reshape its capital structure, build an autonomous balance sheet and broaden its international investor base as it prepares to separate from Citigroup.
This story does not have two clearly opposing sides.
Banamex sold $1.3 billion in debt, its first such sale in decades.
Reports said Banamex was launching its first high-risk bond issue.
Citigroup is expected to sell its remaining 51% stake in Banamex through an initial public offering.
- Bond type
- Perpetual Additional Tier 1 bonds
- Currency
- US dollars
- Previous debt sale
- $1.3 billion in May
- Citigroup stake
- 51%
- Expected sale of Citi stake
- Initial public offering in 2027
- Expected bond rating
- Non-investment grade (junk)