OREANDA-NEWS. August 3, 2012. The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and major Mexican bank Banco Mercantil del Norte, S.A. (Banorte) signed a Memorandum of Understanding regarding a comprehensive alliance that aims to strengthen their collaboration in corporate finance, investment banking and other businesses.

Banorte is the retail banking arm of the Banorte Financial Group, a financial institution established in 1899 that has investment grade ratings by the major agencies with a full range of subsidiaries involved in the pension, insurance, annuities, leasing, factoring and securities businesses. Banorte is Mexico’s fourth largest bank by assets, the third largest by loans and the largest Mexican bank controlled by local shareholders, operating 1,302 branches nationwide. Banorte has nationwide presence throughout Mexico with one of the largest retail networks and also in the US through Texas based International Bank, and two remittance companies.

Mexico reported real GDP growth rates of 5.4% in 2010 and 3.9% in 2011, and is expected to continue experiencing stable economic growth. The country is increasingly drawing attention from companies globally as a prospective production hub, thanks to its proximity to South and North American markets and its free trade agreements with more than 40 countries—including the North American Free Trade Agreement (NAFTA). Entry into Mexico by Japanese manufacturing companies, particularly in the automotive sector, is expected to gain further momentum in the foreseeable future.

Since the opening of its Mexico City Representative Office in 1958 and establishment of a subsidiary in 1995, BTMU has been supporting Japanese companies operating in Mexico. Through this agreement with Banorte, BTMU seeks to expand the services it provides to meet the diverse financial needs of its clients.