Banco Industrial Prepares Hybrids

Guatemala’s Banco Industrial is preparing to issue Tier-1 hybrid debt securities due 2068. Guidance on the notes is heard at 9%-10%, says a banker away from the deal. The size of the issuance has yet to be determined. The notes are rated B+ by Fitch and Ba3 by Moody’s, both which expect to give the notes an equity classification. The Guatemalan bank, which has been acquiring local rivals, had planned to do an IPO on the Mexican Bolsa. The deal through Credit Suisse was expected in February, but it is now on ice. Credit Suisse is leading the hybrid. Fresh from buying a Honduran bank and on the verge of opening in El Salvador, Industrial continues to push into still relatively virgin Central American retail banking territory. Guatemala’s largest bank also hopes to be the first to forge a path north, with plans to expand into southern Mexico. Industrial’s holding company BI Capital – registered in Panama – has $6.4bn in assets, $3.5bn in loans, deposits of more than $5.0bn and about $650m in capital.