Santander Mexico IPO Shows Strength: Fitch

Santander’s plan to launch an IPO of its Mexican division shows the bank has more flexibility to boost its capital than other Spanish lenders, Fitch says. “The listing of a 25% stake in the business will reduce revenue from the region, but is not an indication that Santander is retreating from Latin America,” the agency says. Santander’s diversification across Latin America means it has options when it comes to strengthening capital. In December, the bank sold an additional 7.8% of Santander Chile in a $949m follow-on in December, and sold all of its Colombia unit to CorpBanca for $1.23bn. Santander is in the process of choosing the managers for its Mexico, IPO, according to ECM bankers. Fitch rates Santander Mexico A minus.