Citigroup Advances Mexico Exit with US$2.5 Billion Banamex Sale

Citigroup has sold a 22.6% stake in Banamex to a consortium of institutional investors for US$2.5 billion, advancing its exit from Mexico’s consumer banking segment. Combined with holdings from Fernando Chico Pardo, the new investor group now controls 49% of the bank, paving the way for deconsolidation and a potential IPO. The shift toward local ownership and capital markets funding is expected to strengthen Banamex’s competitiveness and support a recovery in market share within Mexico’s banking sector.

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Citigroup announced the closing of the sale of a 22.6% equity stake in Grupo Financiero Banamex to a consortium of institutional investors and family offices. The transaction, valued at MX$43 billion (US$2.5 billion), represents the majority of the 24% stake offered earlier this year and marks a significant step in the bank’s four-year strategy to exit its consumer banking operations in Mexico.

The investment group includes General Atlantic, Afore Sura, Banco BTG Pactual, Chubb, and funds managed by Blackstone, Liberty Strategic Capital, and the Qatar Investment Authority (QIA). Citi confirmed that investors obtained the required approvals from Mexico’s competition authority and that all closing conditions were met. The remaining 1.4% of the announced 24% stake is expected to close in the coming months. 

Combined with the 25% stake acquired in December 2025 by Mexican businessman Fernando Chico Pardo, approximately 49% of Banamex’s ordinary shares are now held by new investors. Chico Pardo, chairman of the board and the largest individual private shareholder, oversaw the integration of minority investors. To preserve a diversified ownership structure, Citi established a 4.9% cap per individual investor, preventing any single entity from exercising unilateral control.

“The closing of these transactions, combined with my acquisition of 25%, places nearly 49% of Banamex shares in the hands of new investors, bringing us closer to completing the deconsolidation from Citi,” Chico Pardo said.

Citigroup indicated it does not anticipate additional stake sales in 2026. The pause is intended to allow the reconstituted shareholder base to focus on operational strengthening and value creation ahead of a planned initial public offering (IPO). Citi currently retains a 51% majority stake, which it intends to monetize through the listing.

Ernesto Torres Cantú, Director, Citi International, said the level of investor participation reflects confidence in Banamex’s strategic direction and in the broader Mexican financial sector. The divestiture aligns with a global strategy led by Jane Fraser to refocus the group on institutional banking and wealth management. With consumer exits in markets such as Poland already completed, the Banamex transaction remains one of the final steps in Citi’s international retail banking withdrawal.

While the ownership transition advances, Banamex is also engaging international capital markets to strengthen its balance sheet. The bank is preparing a US dollar-denominated bond issuance maturing in 2036. Market sources indicate an initial yield of around 7%, with a five-year call option embedded in the structure. Citigroup is acting as global coordinator and lead placement agent, alongside Crédit Agricole and Société Générale.

Moody’s Ratings assigned a Baa2 rating to the bonds, placing them two notches above speculative grade. However, the agency warned it could downgrade subordinated debt as financial support from Citigroup gradually declines. Despite this, analysts view the transition toward local ownership as a potential competitive advantage.

“The resurgence of Banamex as a locally controlled institution positions it favorably to regain market share in a sector that continues to reward strong domestic brands,” said Roger Horn, senior emerging markets credit strategist, Mariva Capital Markets.

Within Mexico’s financial system, Banamex currently ranks fourth in total assets. Its portfolio includes commercial banking, a retirement fund administrator (Afore), insurance operations and a significant cultural heritage collection. The institutional banking business — retained by Citigroup under a separate license — currently ranks eighth in assets.

The bank continues to operate under CEO Manuel Romo. Management and the board, led by Chico Pardo, have emphasized continued investment in digital capabilities and customer experience to sustain competitiveness. Chico Pardo, who stepped down from the board of BBVA México in late 2025 to lead Banamex, has described the acquisition as a long-term commitment to Mexico’s economic development.

The bank added that its remaining 51% stake will be listed once market conditions and regulatory approvals align. For now, the transition is focused on achieving operational independence. Citi noted that the sale of the consumer business involves approximately 499 million ordinary shares.