SanMex Sets Target for Novel T2

SanMex Sets Target for Novel T2

Mexico Bonds Structured Finance

Santander Mexico is out with mid-6% initial price talk on what would be LatAm’s first Basel III-compliant Tier 2 bond, according to people familiar with the matter. Books opened Tuesday with pricing expected as soon as today. The Mexican bank is targeting an issue of $1bn in the 10-year bond 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). The instr

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