HSBC is aiming to sell MXP1.93bn in a 2028 RMBS this week or next, after initially preparing to come to market as soon as last Friday. The offering rated AAA on a national scale features a MXP969m tranche and MXP964m piece that amortizes after the first, but is not subordinated. A pool of 2,785 of HSBC mortgage loans backs the bonds. HSBC is managing the transaction. The issue is the third from a MXP10bn shelf, last used in the sale of MXP3.5bn in 2025s in October 2007.
Category: Structured Finance
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Bancolombia to Offload Mortgages with MBS
Bancolombia is selling COP191bn ($102m) in mortgage loans to Titularizadora Colombiana, the securitization shop. The mortgages will be securitized through the issuance of TIPS (Colombian MBS). “The purpose of this transaction is to continue the transfer of Bancolombia’s mortgage loans to the capital markets,” says the Colombian bank.
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Cabei Plans Taiwanese Bonds
Cabei plans to sell as much as TWD7bn ($220m) through a bond issue in Taiwan. Proceeds will fund loans to its Central American member nations. Further details are not yet available, a Cabei treasury official in Honduras tells LatinFinance. Separately, the bank announced that it has placed MXP350m in 2020 bonds in Mexico, denominated in the UDI inflation-linked unit, at fixed-rate of 4.44%, via Bulltick. The development bank likes to spread its funding around the globe, issuing MXP750m in Mexico in May and THB2.37bn ($77m) in Thailand in November, both through Citi. It has issued in Japan, Hong Kong, Singapore, and previously in Taiwan. CABEI has 13 member nations, including Taiwan and 6 other non-regional members.
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Infonavit Sets RMBS Sale Date
Mexican mortgage lender Infonavit plans to sell MXP3.53bn in 2030 RMBS as soon as Wednesday, August 27. The issue denominated in the UDI inflation-linked unit will be divided into a MXP1.67bn first tranche and a MXP1.86bn second tranche that amortizes after the first but is not subordinate. The bonds are backed by a pool of 24,000 mortgages. The sale, rated AAA on a national scale, is the third from a MXP15bn shelf. Banamex and Deutsche Bank are managing the transaction, with HSBC as co-manager. Infonavit placed a MXP3.5bn 2023 RMBS issue in June, in two tranches pricing at udibonos plus 105bp and 135bp, respectively. HSBC is set to place its own MXP1.93bn MXP-denominated RMBS issue on Friday, while Metrofinanciera is preparing a MXP2.3bn deal for September.
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HSBC Preps MXP2bn Mexican RMBS
HSBC plans to sell MXP1.93bn in a 2028 RMBS as soon as Friday, according to regulatory documents. The offering rated AAA on a national scale features a MXP969m tranche and MXP964m piece that amortizes after the first, but is not subordinated. The fixed rated will be determined though a bookbuilding process ending Friday. The bonds are backed by a pool of 2,589 of HSBC mortgage loans, reduced slightly from an original 2,785. HSBC is managing the transaction. The issue is the third from a MXP10bn shelf, last used in the sale of MXP3.5bn in 2025s in October 2007. RMBS issuance has been less frequent than expected in Mexico this year, but the market was encouraged by the record-setting issue of MXP4.83bn in 2033 bonds by BBVA earlier this month. Infonavit is planning a MXP3.5bn RMBS sale and Metrofinanciera teeing up a MXP2.3bn offer.
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Metrofinanciera Tees Up RMBS Against Odds
Mexico’s Metrofinanciera is planning to issue MBS worth approximately MXP2.3bn, despite choppy markets, competing large issues and financial troubles that drag its rating ever closer to implied high default probability levels. Metrofinanciera has filed to issue MXP1.6bn equivalent in 2033 notes denominated in the UDI inflation-linked unit and MXP769m in MXP-denominated 2038 notes. Each will be further divided into two pieces which amortize one after the other. The transaction backed by a pool of Metrofinanciera credits is rated AAA on a national scale by all three agencies and will be managed by Deutsche Bank. Metrofinanciera has not set a date for the sale, but CFO Nicolas Palacios tells LatinFinance it should come in September or early October, at an expected spread of 40p wider than its April issue of MXP750m in 2038 RMBS, which came at TIIE plus 250bp. S&P Wednesday chopped Metrofinanciera’s counterparty credit rating to B from B+, BBB minus from BBB on a national scale, amid concerns about a deteriorating funding profile and limited liquidity. The issuer faces a rocky RMBS market in which competitors HSBC, Infonavit and Su Casita are all preparing sales north of MXP2bn each for August and September.
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IDB Lends $400m to Guatemala
IDB has approved a $400m 20-year loan to Guatemala in support of a program to improve fiscal management. The floating rate loan has a 5-year grace period. The new program will support stable macroeconomic policy, as well as improve tax administration and collection to boost equality in Guatemala, the multilateral adds. The ministry of public finance of Guatemala will carry out the program.
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Costa Rica Bags Record Infrastructure Package
Costa Rica has secured $850m in an IDB conditional credit line for infrastructure projects, as well as the first individual loan, a $300m financing for roads. The IDB says the deal represents the highest amount approved for Costa Rica in the multilaterals’ history and will finance investments in sectors supervised by Costa Rica’s Ministry of Public Works and Transportation, including co-investments with municipal governments. “Considered in proportion to Costa Rica’s population, this credit line is the IDB’s largest investment in the transportation sector in the last 10 years,” says the IDB. “It will enable Costa Rica to modernize its transportation infrastructure, including roads, ports, railroads and air transportation, with an emphasis on economic and social integration.”
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Interbank Plots New DPR Transaction
Peru’s Interbank is preparing to sign a floating-rate secured loan for up to $100m, backed by future diversified payment rights (DPRs) from electronic transactions. The 2015 facility will pay a spread over Libor and should close in September, according to S&P, which give the transaction a preliminary BBB rating. Nomura Securities is arranging the transaction. Interbank did a similar deal in June, privately placing a $200m 2015 secured floating-rate loan via Credit Suisse, at an all-in cost of approximately 7.5%.
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IDB Backs up Amazonas Effluence
The IDB has approved a $154m loan to the Brazilian state of Amazonas to finance the construction of drainage, sewage, and solid waste collection and disposal systems in its capital, Manaus. The loan, which will be priced over Libor and will mature in 25 years with a 5-year grace period, will finance 70 percent of the total cost of the project. The facility complements another loan from the multilateral granted to the state in 2006 to begin sanitation and other water works in the Educandos/Quarenta watershed, which is located in the heart of Manaus.