By Amy Guthrie
MEXICO CITY--Mexican bank Grupo Financiero Santander Mexico SAB
(BSMX, SANMEX.MX) said Wednesday it plans to propose paying out a
shareholder dividend of $1 billion to $1.3 billion, while raising a
similar amount via debt, so as to improve its capital position.
Mexico's fourth-biggest bank lender said in a filing to the
Mexican Stock Exchange that it hopes to soon put the proposals
before shareholders for a vote.
Santander Mexico said it aims to raise about $1 billion, market
conditions permitting, to lower its capital costs and improve the
bank's profitability.
Parent company Banco Santander SA (SAN) of Spain has agreed to
purchase 75% of the debt issuance, should the deal come to market,
the Mexican bank said.
The bank didn't say when it might put the proposals to vote, or
when it might pay the dividend or raise debt.
Santander Mexico raised $4.15 billion via a dual listing on New
York and Mexico stock exchanges last year, marking the
second-biggest initial public offering in the U.S. for 2012.
Write to Amy Guthrie at amy.guthrie@wsj.com
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