EM LATAM CREDIT: Mexico: “Banorte buys Rappicard for $50 million” – Expansion

Grupo Financiero Banorte SAB de CV (BANORT; Baa2neg /BBB /BBB-)

Neutral

• One of Mexico’s largest banks, Banorte purchased for USD50mn 44.28% of the shares of Tarjetas de Futuro (TDF), which controls Rappicard, and signed a 15-year exclusivity agreement to market its financial products to users, overall expanding its presence in digital banking.

• The bank has partnered with Rappi since 2021 when it agreed to offer credit cards to Rappi’s online customers and as of year end 2024 1.14mn credit cards were issued, according to Expansion.

• Banorte has struggled with its digital bank Bineo since its launch in January 2024 and recently announced a restructuring of the subsidiary after losing MXN981mn (USD48mn) in 2024 and MXN99mn in January 2025, according to Bloomberg.

• Banorte issued two junior subordinated Perpetual (BANORT; Ba2 /BB- /NR) notes November 2024, each for USD750mn, one callable in 2031 and the other callable in 2034. The PerpNC6.5Y was issued at T+407bps, last quoted T+554bps with 90bps of the widening since March month end. The PerpNC10Y came at T+430bps, last quoted T+529bps with 60bps of widening April month to date.