Expensive and exclusive credits
Garza, owner of the unlisted Gentor construction and infrastructure group, said he would have no trouble raising the $4 billion to $8 billion that analysts have estimated is needed to pay for the deal.
“I talk to those who approach me about the interests they have, how much they are willing to invest and the returns they expect,” he said, adding that a fund offered earlier this week to contribute $700 million.
Garza commented that he is open to the state taking a partial stake if it wishes and that he has held talks with the president about the bank’s cultural assets, which the latter has publicly said must be protected as part of any deal.
“I met with the president and his team. We agreed that the works of art that are part of Banamex’s cultural heritage should be exhibited in a new museum.”
The bank, based in an 18th-century baroque building in downtown Mexico City, owns other historic properties and has an extensive art collection.
“We want to create a Mexican museum where all the works are available to the country,” Garza said.
Mexico’s Interior Secretary Adán López said the government had no interest in acquiring the bank the day after Citigroup announced the planned sale.
As for the business model, the entrepreneur would seek to expand banking services to a broader swath of the population, in a country where only about 40% have bank accounts, one of the lowest levels among emerging markets.
“Loans in Mexico are expensive and exclusive. This should not be the case,” Garza said. “We have to offer better rates while ensuring that the bank makes a profit for its investors.”
