Fovissste Sets Guidance for MXP Issuance

Mexico’s Fovissste plans to issue up to MXP3.6bn ($309m) equivalent in UDI-denominated RMBS today, with guidance in the 4.85% area, according to a banker with knowledge of the transaction. Proceeds from the 2040 bonds will be used to originate mortgages. Banorte, BBVA, Bancomer and Bank of America Merrill Lynch are bookrunners on the deal, which would be the government lender’s first of 2011. The bonds are rated AAA on a national scale.