BBVA Bancomer Preps $1.1bn+ Hybrid

Mexico’s BBVA Bancomer, owned by Spanish bank BBVA, is preparing to issue $500m worth of Tier I notes, (A1/BBB+) and upwards of €500m in Tier II notes. The Tier I notes are non-cumulative subordinated and non-preferred 15 non-call 10, due 2022 and callable in 2017 and thereafter. In year 10 they switch to floating rate and step up 100bp from the price to be determined next week. The Tier II notes are cumulative fixed-to-floating rate subordinated preferred 10 non-call 5 notes due 2017 and callable in 2012. Two simultaneous roadshows will kick off Monday and pricing may come Thursday. Credit Suisse, BBVA Securities and Deutsche Bank are joint-leads.