MEXICO CITY, Nov. 27, 2013 /PRNewswire/-- Grupo Financiero Santander Mexico, S.A.B. de C.V. (BMV: SANMEX;NYSE: BSMX) ("Santander Mexico" or the "Company") today announced that the Board of Directors of its subsidiary Banco Santander (Mexico), S.A. Institucion de Banca Multiple, Grupo Financiero Santander Mexico, resolved among other items, to (i) convene an Ordinary and Extraordinary General Shareholders Meeting at which, among other items, it will submit to its shareholders for approval, the payment of a cash dividend to its shareholders in an approximate amount between U.S.$1,000 million and US.$1,300 million and (ii) authorize the issuance of subordinated notes that comply with capital requirements under Basel III for Tier 2 capital in an aggregate amount of approximately U.S.$1,000 million, subject to market conditions and regulatory approvals.
In addition, the Board of Directors of Grupo Financiero Santander Mexico, S.A.B. de C.V. resolved to convene an Ordinary and Extraordinary General Shareholders Meeting at which it will seek approval for, among other items, the payment of a cash dividend to its shareholders in an amount between U.S.$1,000 million and US.$1,300 million which will mainly come from the amount to be received from Banco Santander (Mexico) S.A.
The above is part of a strategy to optimize the Bank's capital as it seeks to obtain a lower cost of capital and higher returns on equity.
Banco Santander S.A. (Spain) has expressed its intention to purchase 75% of the debt issuance referenced above and to ensure its complete subscription.
In the event that the two operations are consummated, it is estimated that the Bank will maintain a Tier 1 capital ratio of at least 12% and a Tier 2 capital ratio of approximately 2.5%.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in the United States of America or any other jurisdiction in which such offer, solicitation or sale would be prohibited prior to registration or qualification under the securities laws of the United State or any such jurisdiction. The offering of debt securities described in this press release have not been registered under the United States Securities Act of 1933 or any applicable securities laws of any other jurisdiction. Without such registration, the securities described above may not be offered or sold in the United States or any other jurisdiction except pursuant to an exemption from the registration requirements of the Securities Act of 1933 or any applicable securities laws of such other jurisdiction.
About Grupo Financiero Santander Mexico
Grupo Financiero Santander Mexico, S.A.B. de C.V. (Santander Mexico), one of Mexico's leading financial services holding companies, provides a wide range of financial and related services, including retail and commercial banking, securities brokerage, financial advisory and other related investment activities. Santander Mexico offers a multichannel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multinational companies in Mexico. As of September 30, 2013, Santander Mexico had total assets of Ps.806.3 billion under Mexican GAAP and more than 10.6 million customers. Headquartered in Mexico City, the Company operates 991 branches and 238 offices nationwide and has a total of 13,883 employees.
Investor Relations Contact
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.