Banorte returns to Swiss bond market

Banorte returns to Swiss bond market

Bonds Debt Capital Markets Fixed Income Mexico Europe

Mexican lender Banorte raised CHF160m ($164m) in Swiss francs on Tuesday, marking the second time this year that it issued notes in the Swiss bond market this year.

Credit Suisse priced the 4.25-year notes with a 0.45% coupon to yield 0.409%, equal to a spread of 135bp over mid-swaps, said a source involved in the deal.

The bookrunner had put the initial price talk between 135bp and 140bp, but it stuck to the low end on strong demand from investors keen to buy debt from the BBB rated lender during a summer lull, the source said.

Banorte "took advantage of a lack of supply from international borrowers and record-low global rates," the source added.

Banorte also worked with Credit Suisse when it sold CHF250m in 3.5-year notes at 200bp over mid-swaps in March.

In June, the bank issued $1.1bn in perpetual notes in the dollar bond market, with $500m at 6.75% and $600m at 7.5%.

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