The July follow-on issued by Mexico’s largest domestically owned financial group, Banorte-Ixe, can be viewed as a microcosm of the wider economy. Although almost exclusively a domestic Mexican business, and despite having to announce some short-term negative news, the company attracted international investors around the world. (Banorte’s exposure to the troubled, three-largest Mexican homebuilders was substantial but containable, at about 2.2% of its loan portfolio, and much of that exposure was secured against land values.)
The growth outlook for retail banks in Mexico is probably unmatched anywhere else in the world: credit penetration among the population relative to GDP is lower than in Afghanistan and yet economic fundamentals and the medium-term outlook are much rosier for Mexico than for that war-torn comparator. More than 200 accounts bought Banorte shares: the $2 billion sale was upsized to $2.5
