Business · Markets · 1 hr ago
Banamex raises $900 million through AT1 bonds
Mexico’s Banamex raised $900 million through AT1 bonds in an international sale.
The hybrid capital instruments are perpetual and pay 9.5% annual interest, and the bank can choose to redeem them starting 5.5 years after issuance.
The sale was oversubscribed by international investors from the United States, Europe, Asia and Latin America.
Banamex said the deal strengthens its capital and supports its growth plans, even as markets are volatile.
It is the bank’s second successful international capital transaction this year; in April, it issued $1.3 billion in subordinated Tier 2 notes.
Banamex is continuing its transformation after separating from Citi, which still owns 50% of the bank.
Citi is expected to launch an IPO in 2027 for its remaining stake in Banamex.
Banamex announced it had raised $900 million through Additional Tier 1 (AT1) hybrid capital instruments.
The bank said the transaction was oversubscribed, with strong demand from international investors in the United States, Europe, Asia and Latin America.
The perpetual instruments pay 9.50% annual interest and can be called by the bank starting 5.5 years after issuance.
Banamex said the proceeds would strengthen its capital structure and support its growth objectives.
The issuance comes as Banamex continues its transformation after separating from Citi, which retains a 50% stake.
- Who
- Banamex raised the funds.
- What
- It issued $900 million in AT1 hybrid capital instruments.
- When
- The bank announced the placement on Monday; the article was published on October 20, 2026.
- Where
- Not stated. The instruments are listed on Euronext Dublin Global Exchange Markets.
- Why
- To strengthen the bank’s capital structure and support its growth objectives.
This story does not have two clearly opposing sides.
Banamex announced a $1.3 billion issuance of subordinated preferred Tier 2 capital notes.
Banamex announced the placement of $900 million in AT1 instruments.
Citi is expected to launch an initial public offering for its remaining stake in Banamex.
- Amount raised
- $900 million
- Instrument
- Additional Tier 1 (AT1) hybrid capital
- Annual interest rate
- 9.50%
- Early redemption
- At the bank’s option, starting 5.5 years after issuance
- Ratings
- Ba2 (hyb) by Moody’s; BB- by S&P
What people are saying
This issuance represents our second successful transaction in the international capital markets this year, demonstrating our consistent access to the markets and the strength of investor demand for Banamex credit.
The successful placement of this transaction, particularly in a volatile market environment, reflects the strength of the franchise and the confidence international investors place in Banamex’s business model and financial position.