Titularizadora Colombiana has completed the second COP313bn ($139m) phase of a COP442bn local RMBS transaction. The mortgage securitization specialist sold COP173bn in 7.70% of 2019 bonds, COP97bn in 10.50% of 2024s, COP32bn in 11.50% of 2024 subordinated notes and COP11bn in 12.00% of 2024 mezzanine bonds. Wednesday, Titulizadora sold COP130bn of the 7.70% 2019s through an auction process that was 2.1x subscribed. The senior notes are rated AAA on a national scale, with subordinated and mezzanine tranches marked at A and BBB+, respectively. Mortgage credits originated by Bancolombia, Davivienda and BBVA, back the securities. A group of 10 local brokerages managed the sale process.
Category: Structured Finance
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Salvadoreno DPR Edges Close to Junk
S&P has lowered its ratings on Salvadoreno DPR Funding Ltd notes series 2004-1 and 2004-2 to BBB from BBB+ and affirmed Banagricola DPR Funding Ltd at BBB. The notes are Salvadoran financial future flow transactions backed by diversified payment rights (DPRs) and the move follows this week’s demotion of El Salvador to BB from BB+, which also affected Banco HSBC Salvadoreno. “Salvadoreno DPR Funding’s and Banagricola DPR Funding’s transactions performance remain strong with a 34.8x and 110.0x debt service coverage ratio, respectively, as of first quarter 2009,” says S&P.
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Titularizadora Prices RMBS
Colombian mortgage securitizer Titularizadora Colombiana has priced COP130bn in 2019 RMBS, in the first stage of the sale targeting COP442bn in funds. The 2019 senior notes priced at 7.70%, with total demand reaching COP272bn. The remaining COP313 – in 2019 senior, 2024 senior, 2019 subordinated and 2019 mezzanine tranches – is set to price today. The senior notes are rated AAA on a national scale, with subordinated and mezzanine tranches rated A and BBB+, respectively. Mortgage credits originated by Bancolombia, Davivienda and BBVA, back the securities. Ten local brokerages are managing the sale process.
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Titularizadora Sets RMBS Size
Colombian mortgage securitizer Titularizadora Colombiana plans to sell COP443bn ($199m) in MBS Wednesday, according to bookrunner Correval. Titularizadora plans to issue COP130bn in 2019 bonds at an interest rate up to 8.5% via an auction mechanism. It also plans to place Thursday up to COP313bn in 2019 and 2014 senior notes, and subordinated and mezzanine bonds through an underwriting process. The senior notes are rated AAA on a national scale, and the subordinated and mezzanine tranches rated A and BBB+, respectively. Mortgage credits originated by Bancolombia, Davivienda and BBVA, back the securities. Bancolombia and Correval are managing the sale.
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CAF Files USD Debt Shelf
Andean multilateral CAF has filed a $1.5bn shelf with the SEC, including $1.0bn in previously registered but unsold securities and $500m in new capacity. The development bank plans to use proceeds to fund its lending operations. It did not list any bookrunners or give an indication of when issuance might start. CAF has previously said it plans a dollar bond this year, as part of a plan to borrow $600m-$800m from various international markets. It has already started, having sold COP240bn ($95m) in 2014 and 2019 bonds in Colombia in April, and JPY10bn ($108m) in 2019 bonds with a single Japanese investor in February.
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Infonavit Attempts Mexico RMBS Revival
Mexican mortgage lender Infonavit is preparing an RMBS issue which could surface in as soon as 2-3 weeks, according to bankers managing it. The issuer filed for a transaction earlier this year, but the sluggish state of Mexican domestic capital markets has allowed for very little issuance to date. Infonavit may be able to crack the market for the first RMBS offering this year, as its government support make its credits less risky than other mortgages. The terms are still to be defined, but the documentation allows for an UDI-denominated issue of up to MXP3.38bn at a tenor of up to 22 years, split into 2 tranches amortizing one after the other. The AAA rated transaction is likely to be quite smaller than the limit, bankers say, and perhaps limited to just 1 tranche. Banamex, HSBC and Deutsche are managing the sale. Infonavit brought the last Mexican RMBS offer in late December, a MXP2.16bn 2030 bond denominated in UDIs, with both tranches priced at 5.55% and 6.25%, for the same tenor.
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Mexico Secures IDB Swine Flu Aid
The IDB says it will approve $3bn in loans to Mexico this year to help it deal with the effects of the global economic crisis and swine flu emergency. “The swine flu emergency could worsen Mexico’s contraction, adding to the economic slowdown caused by decreases in remittances and exports,” the bank says. In addition to the $3bn in loans, the IDB says it will grant $1m to support efforts to detect new flu cases and launch a $5m regional initiative with the Pan American Health Organization to help Central American countries strengthen their early alert and diagnostic mechanisms to prevent the spread of the swine flu and other infectious diseases. In general, these public sector loans will have an amortization period ranging from 15-25 years and a grace period between 4-5 years with an interest rate over Libor or adjustable rates, a spokesman explained.
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Development Banks Pledge up to $90bn
Five multilateral development banks plan to increase support to Latin America by providing as much as $90bn during the next two years. The IDB, World Bank Group, CAF, Caribbean Development Bank and Cabei are working together to identify partnerships to increase their impact and protect gains of the last 5 years, the banks say. The IDB is expected to provide $29.5bn of the total, the World Bank $35.6bn, CAF $20bn, and Cabei $4.2bn and CBD $500m. The banks did not immediately provide further details.
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Panama, Uruguay Secure IDB Loans
The IDB has approved a $500m loan for Panama. The loan is expected to partially offset a shortfall in USD denominated lending to the productive sector. The shortfall is a result of the global financial crisis, the bank says. The loan is for a 5-year term, with a 3-year grace period, at an interest rate based on 6-month Libor plus 400 basis points. Meanwhile, the IDB has approved a $285m loan for Uruguay to streamline the tax system and improve central government efficiency. The loan is for a 20-year term, including a 5-year grace period, with a variable interest rate based on Libor.
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America Movil Nails Down CDB Funds
Major regional mobile telecom America Movil has secured a $1 billion 10-year loan from the China Development Bank (CDB). Pricing is in line with other ECA financing, at slightly above 100bp over Libor, highly competitive versus the volatile bank market. “We likely will have this line closed before end of the month,” America Movil’s CFO Carlos García Moreno tells LatinFinance. Proceeds will be used to finance purchases of equipment from China. Huawei is one of the suppliers. Telemar last month got a $300m loan from CDB. The 7-year facility pays Libor plus 250bp and features a 2-year grace period. The Brazilian telecom, also known as Oi, plans to use proceeds to finance its 2008-2009 investment activity in China with network equipment supplier Huawei.