Consubanco Targets MX$1.3 Billion Debt Sale on BIVA

Mexican banking institution Consubanco is set to issue up to MX$1.3 billion (US$75.18 million) in debt certificates on the Institutional Stock Exchange (BIVA) this week. This transaction represents the third issuance under an authorized MX$10 billion (US$578.3 million) program, which has a five-year term and includes an overallotment option of up to MX$3 billion (US$173.5 million). 

The company plans to use the proceeds to refinance liabilities associated with its "CSBANCO23" certificates, support working capital requirements and fund general corporate purposes. Monex is serving as the common representative for the issuance, while Punto Casa de Bolsa is acting as the placement agent.

The debt offering received an "A" rating from both Fitch Ratings and HR Ratings, reflecting a low risk of default. Fitch Ratings noted that Consubanco maintains “a favorable market position in payroll loans with delegated collection for public sector workers.”

Consubanco, which is owned by the Chedraui family and began operating as a multiple banking institution in 2012, recently reported a 119% increase in net profit to MX$1.1 billion.

At the end of 2025, the bank ranked as Mexico’s fourth-largest institution in the personal loan segment, behind Banco Azteca, BBVA and Banamex. Its loan portfolio consists of 76% payroll-deducted loans and 24% financing products. According to its 1Q26 financial report, the institution held more than MX$4.2 billion (US$242.9 million) in bank loans.

Consubanco Aquires CIBanco Credit Portfolio

The capital raise follows a significant expansion of Consubanco’s market presence. In March, Mexico’s antitrust authority authorized Consubanco to acquire CIBanco’s credit portfolio.

The transaction includes CIBanco’s commercial, Infonavit, mortgage, personal, automotive and special-situation loan portfolios, as well as the leasing operations of Finanmadrid. Consubanco has a history of acquiring distressed assets, having previously paid approximately MX$867 million (US$50.2 million) for assets belonging to the failed Banco Ahorro Famsa.

The portfolio became available after CIBanco entered liquidation following money laundering allegations raised by the US Department of the Treasury. In June 2025, the Financial Crimes Enforcement Network (FinCEN) issued an enforcement action under the Fentanyl Sanctions Act, alleging that CIBanco facilitated transactions linked to the purchase of chemical precursors used by drug trafficking organizations.

The designation effectively disconnected the bank from the US financial system, causing severe operational disruptions. Among the most significant impacts was the termination of its relationship with Visa on June 30, 2025, affecting approximately 220,000 debit and prepaid cards. In addition, more than US$38 million held in US-based fiduciary accounts became inaccessible.

Mexico’s National Banking and Securities Commission (CNBV) initially appointed provisional administrators from Alvarez & Marsal México before revoking CIBanco’s banking license in October 2025 due to severe liquidity constraints.

The Institute for the Protection of Bank Savings (IPAB) subsequently initiated the bank’s liquidation process on Oct. 13, 2025, guaranteeing deposits of up to 400,000 UDIs, equivalent to approximately MX$3.4 million (US$196,700) per depositor.

FinCEN later amended its order to allow Mexican authorities to complete the liquidation of CIBanco’s assets. According to the US Treasury Department, the amendment reflected “the shared commitment of the United States and Mexico to protect the financial systems of both countries from cartels and drug traffickers.”