Mexico’s Banorte has returned to the Mexican retail structured products market with a new certificate of deposit (CD) after a year’s absence.
The One Touch Peso/Dollar CD - 5.5% pa - 12 August 2014 offers a capital return of 100% plus 5.5% pa if at any time during the observation period the exchange rate is equal to or lower than 12.88. Otherwise, the product offers a minimum capital return of 100%. The product raised MXN7.45m ($0.57m) during its offer period.
Banorte has expanded its certificate product offering with the addition of this new digital range structure to offer an alternative to the Dual Peso Dollar certificates regularly used by providers in the Mexican market.
Earlier in the summer, Banorte offered three Range Peso/Dollar CDs, raising a total of MXN68.55m ($5.5m) in August.
Banorte has not been a very active player in the structured products market until recently. SRP data shows that it marketed three structured funds for retail investors on 2013.
With the addition of Banorte, there are now seven active providers in the market, including Monex, BBVA Bancomer, Banamex, Banco Santander, Sociabank Inverlat, and Actinver.
Banorte, which was founded in 1899, has more than 13m clients, is the fifth-largest bank in the country and the only major bank in Mexico not owned by a foreign group,
Banorte did not return calls requesting comment on the bank’s plans in the retail structured products market.
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