Santander Mexico Pioneers Basel III T2

Santander Mexico Pioneers Basel III T2

Mexico Bonds Structured Finance

Santander Mexico is preparing to roadshow LatAm’s first Basel III-compliant Tier 2 bond, a 10-year $1bn note that carries risk of coupon deferral or principal write-down. Coupons on the instrument will be deferred, cumulatively, if the bank’s core tier one ratio breaches 7% of risk weighted assets (RWAs), LatinFinance understands. The instrument will take a partial principal write-down if the bank’s capital falls below 4.5% of RWAs, according to Moody’s. The deal, which should set a precedent fo

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