Banorte Local Tap Runs Dry

Mexico’s Banorte issued Tuesday MXP1.34bn in local 10-year subordinated notes in a sale that ended up falling short of the issuer’s MXP2.2bn target. The sale is fourth installment from a MXP15bn program. The notes, which were distributed largely to a retail investor base, were priced at TIIE plus 200bp. Pricing expectations were in the 175bp-200bp area, says an executive on the deal, attributing the weak appetite to generally poor market conditions. Banorte self-led the A3/AA rated deal.