Banorte Returns to DCM

Mexico’s Banorte has priced $300m in 2015 bonds at 99.725 with a 4.380% coupon to yield 4.437%, or UST plus 262.5bp, in line with 262.5bp guidance. Investors generally spotted the pricing as fair, and note the rarity value and overall strength in the Mexican financial sector. The deal drew more than $600m in orders, according to a banker on it. JPMorgan managed the sale, rated A3//BBB minus, issued through its Grand Cayman Branch. It was Banorte’s first bond in 4 years, following a $600m subordinated sale in October 2006 through Credit Suisse, Morgan Stanley and UBS, according to Dealogic. The issue follows investor meetings at the end of June.