Last updated: 16:29 / Wednesday, 24 July 2013
Statements by A. Valenzuela

“Banorte Does Well When Mexico is Doing Well”

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“Banorte Does Well When Mexico is Doing Well”

On Tuesday, Guillermo Ortiz, chairman of the Board of Directors of Grupo Financiero Banorte, stressed Mexico’s  position and the strength of its macroeconomic indicators, as well as the country’s ongoing reform process, while also stressing that the company is optimistic about Mexico’s performance in the short and medium term.

The executive was speaking after the bell-ringing ceremony to commemorate the Grupo Financiero Banorte’s stock tender offer on the Mexican Stock Exchange (BMV). Ortiz explained that IPOs in emerging markets, which are lower in Mexico than in other emerging markets, are the result of the global recovery "which will revert to normal" following "the distortions in the global economy" as a result of the ample liquidity available and consequent massive capital inflows into emerging markets.

Likewise, the executive pointed out Banorte’s confidence in Mexico in the short and medium term, which is evident in investors’ response to its placement. Meanwhile, Alejandro Valenzuela, Banorte CEO, commented that this is the beginning of an additional commitment to strengthen the financial industry. “Banorte does well when Mexico is doing well,” he said.

For his part, Luis Tellez, president of BMV, the world’s second fastest Stock Exchange after Switzerland, said that since 2005, they experienced an increase from 75,000 to over 8 million operations, and mentioned the financial reform, which according to Tellez “opens exciting possibilities for medium companies” before congratulating the group for the placement of “one of the most dynamic shares in the BMV”.

Banorte obtained about 2,540 million dollars from its July 16th placement, with an overall demand of 3.5 times the offer. Its resources will be channeled to acquire the 4.5% stake which IFC, the World Bank's financial arm, has on the Mexican bank, to pay off a syndicated loan of $800 million arising from the purchase of Afore Bancomer, and to settle $ 778 million for the consolidation of 100% of the capital of Seguros Banorte Generali, and Banorte Generali Pensions.

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