HSBC Trust Sells MXP7bn in ABS

An HSBC trust has sold MXP7bn in 40-year bonds at the 28-day TIIE plus 20bp. The bonds are backed by interest payments on a MXP7bn loan that Dexia made to the government of Mexico City. Demand reached MXP9bn, says a banker close to the deal. Proceeds will be used by HSBC to fund the purchase of the rights to the loan contract from Dexia, signed in August 2007, as well as the rights to receive payment on debt service. The deal is rated Aaa/AAA on a local scale, due to the fact that Mexico’s federal government guarantees the DF’s debt payments. IXE and Actinver were bookrunners on the transaction.