Banco Sabadell México Issues MX$4 Billion in BMV Debt Debut

Banco Sabadell México debuted in the domestic corporate debt market with a MX$4 billion bond issuance to diversify funding and expand corporate lending. The three-year floating-rate note, linked to TIIE de Fondeo, was 2.3 times oversubscribed, signaling strong investor demand. Proceeds will fund credit lines for large corporates and industrial projects in Mexico.

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Banco Sabadell México issued MX$4 billion (US$229 million) in bank stock exchange certificates on the Mexican Stock Exchange (BMV), marking its debut in the national corporate debt market through a traditional bell-ringing ceremony. The listing reflects the commercial bank’s strategic expansion into local capital markets to diversify its long-term funding sources and accelerate domestic corporate lending operations.

The public debt offering drew strong institutional interest, with an oversubscription rate of 2.3 times the original target volume. Structured with a three-year maturity, the securities carry a floating interest rate referenced to the TIIE de Fondeo (Funding Interbank Equilibrium Interest Rate). Banco Santander, HSBC México, and Actinver acted as lead placement agents for the transaction. Banco Sabadell México CEO José Iragorri said the funds will expand the bank’s corporate loan book, with a focus on capital investment projects across key domestic industrial sectors and large corporate clients.

During the ceremony, Iragorri said that the bell-ringing at the BMV symbolizes the trust placed in Banco Sabadell México by investors, clients, and partners. He added that the milestone reflects years of institutional preparation and reinforces the bank’s commitment to expanding in Mexico, a key strategic market for the broader international financial group.

Pablo Figueroa Besga, CFO, Banco Sabadell México, noted that entering the local debt market is a key step in the institution’s financial development. He said investor demand confirms the bank’s underlying stability and strengthens its strategy to diversify funding sources and support sustainable balance sheet growth in the coming years.

Grupo BMV CEO Jorge Alegría said the bank’s arrival at the BMV is a positive signal for the national financial system, highlighting the exchange’s role as an efficient mechanism for financial institutions to secure funding for expansion.

Sabadell México Reports 1Q26 Financial Growth

Sabadell México’s BMV issuance follows a strong 1Q26, in which the bank reported net profit of MX$275 million (US$16.01 million). Results were supported by steady growth in its total credit portfolio, which reached MX$112.49 billion (US$6.55 billion) at the end of March, representing annual growth of 21.6% in constant currency and 13.7% at current exchange rates. Total client deposits also rose to MX$66.44 billion (US$3.87 billion).

The lender recorded double-digit growth across its main corporate business segments. Corporate and Investment Banking (CIB) expanded 11% year over year, while the commercial banking unit grew 18% compared with the first quarter of the previous year. Asset quality also improved, with the NPL ratio declining 50 basis points year over year to 1.97%. Iragorri said these indicators reflect a strategy focused on client proximity and regional agility, reinforcing Mexico’s position as a priority market for long-term expansion.

At the parent group level, Banco Sabadell Group ratified Marc Armengol as its new global CEO following approval from the General Shareholders’ Meeting and the European Central Bank. The group reported attributable net profit of US$406.46 million for the quarter, down 29.1% year over year due to non-recurring expenses.

Despite the decline, the group maintained solid solvency metrics, reporting a fully loaded CET1 capital ratio of 13.2% and a recurring return on tangible equity (RoTE) of 14.1%. Following the divestment of its UK subsidiary TSB for US$3.87 billion, the parent company approved an extraordinary dividend of US$0.59 per share, payable on May 29, 2026, while maintaining its global profitability target of 16% for 2027.

The bank’s 1Q26 performance follows a solid 2025, when it reported net profit of MX$1.32 billion (US$75.6 million) and an NPL ratio of 1.72%. Its credit profile carries local ratings of AA+ from S&P Global Ratings and AAA from HR Ratings.