Banorte Specifies Follow-on Target

Banorte has given additional definition to its equity follow-on scheduled to price Tuesday, which would raise MXP29.43bn ($2.3bn) at Wednesday’s closing price. The Mexican bank plans to sell 403m primary shares, including a 15% greenshoe, and expects 201m to end up with Mexican inventors, according to an updated prospectus. The stake should represent 14.75% of the bank. Banorte indicated a $2bn base deal last week after initially aiming for $3bn. The bank will use the proceeds to pay back a loan, buy out the IFC’s remaining shareholding, and fund its purchase of insurance and pension stakes from Italy’s Grupo Generali earlier this year. Bank of America Merrill Lynch and Morgan Stanley are global coordinators and Banorte-Ixe local coordinator. Banamex, BBVA Bancomer, BNP Paribas, BTG Pactual, Goldman Sachs, Itau, JPMorgan, Mistubishi UFJ and Nomura are joint bookrunners. Shares closed at MXP73.02 Wednesday.