State of Mexico Rumored in Innovative ABS

State of Mexico (Edomex) is heard working on an innovative MXP4bn securitization of residential property titles. Mexico-based sources say the deal is structured by MBIA and a deal through Banamex and HSBC is likely to be registered shortly on the bolsa. OPIC is also heard participating and a 20-year tenor is rumored. “It will be good to have a price for 20-year money,” says a local markets participant. People familiar with the structure say it has never been done before in Mexico but could be replicated. Edomex finance secretary Raul Murrieta Cummings declines to comment on the specifics of what looks set to be an innovative title securitization for the state. The state stood out last year with a MXP25bn refinance which extended duration and slashed the price on most liabilities.