Mexico's Banamex markets risky debt ahead of Citi split

MEXICO CITY, Oct 14 (Reuters) — Mexican lender Banamex is marketing its first sale of high-risk bonds, a key move to reshape its capital structure as it prepares for independence from its parent, US banking giant Citigroup. The offering of US-dollar perpetual bonds — reported on Wednesday by financial publication IFR — is the latest step in Banamex's strategy to build a standalone balance sheet and broaden its international investor base. The deal follows a $1.3 billion debt sale in May, its first in decades. Citigroup has been unwinding its ownership of the Mexican bank, recently selling a 49% stake to a group of investors that includes Mexican businessman Fernando Chico Pardo, Blackstone, and General Atlantic. Citigroup retains a 51% stake, which it is expected to sell through an initial public offering (IPO) in 2027. The "Additional Tier 1" (AT1) notes are designed to absorb losses. Investors could see their holdings written off if the bank's capital drops below a specific level. The notes are expected to receive a non-investment grade, or "junk," rating, according to the IFR report and an investor-meeting invitation seen. Citigroup is serving as the global coordinato