Mexican housing finance company GMAC Financiera is to issue the first mortgage-backed securities (RMBS or Borhis) to carry a full wrap. The issue, due to be launched today, Thursday, will be denominated in inflation-indexed investment units (UDIs), divided into two series, totaling 194 UDIs ($68 million). The securities are backed by financial guarantees issued by Financial Guaranty Insurance Company (Figic) of the US, showing the growing interest in Mexico’s domestic MBS market by international players, according to ratings agency Standard & Poor’s which this week rated Series A of the issue AAA. The securities mature 2035 and will pay a fixed rate of 4.40% (A) and 6.60% (B). This is GMAC’s seventh securitization issue.
Category: Structured Finance
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CAF Bridges The Gap
Ecuador has signed a $43 million loan agreement with Andean Development Corporation (CAF) to finance the upgrading and improving of the Rafael Mendoza bridge in Guayaquil. The work will improve the only direct route between the city of Guayaquil and the rest of the country, through the Guayaquil–La Puntilla–Durán corridor. An initial loan of $57 million from CAF for the bridge has already been executed, taking the Corporation’s contribution of this stage of the project (estimated cost: $147.9 million) to almost 70%. The works are due to be completed by the end of the year.
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New Auditor General For IDB
Alan Siegfried has succeeded Elizabeth J. Folsom to become the new auditor general for the Inter-American Development Bank (IDB). Siegfried, a US citizen, previously worked as an internal audit partner at Grant Thornton and Ernst & Young, and was regional director of Enterprise Risk Services at Deloitte & Touche. He will report to IDB president, Luis Alberto Moreno, and to the Bank’s Audit Committee.
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IDB Paves The Way In Panama
The Inter-American Development Bank (IDB) has granted a $70 million loan to Panama for the first phase of a program to improve the country’s road infrastructure and increase its competitiveness by cutting costs and travel time for passengers and cargo. The loan is for a 20-year term, with a six-year grace period and a variable interest rate. Panama will invest $35 million in the first phase of the program. The IDB may approve loans totaling $100 million for the following two phases, in which Panama would invest an additional $70 million. The program will be carried out within the framework of the Plan Puebla Panama regional integration effort.
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Banco Hipotecario Places $23 Million MBS
Argentine Banco Hipotecario placed $23 million worth of mortgage-backed securities (MBS) in the local market, after receiving offers worth $61.7 million. The paper was bought mainly by pension funds, who took up 37%, followed by retail investors with 20%. The certificates will yield 2.5% above the CER inflation rate. The issue was arranged by Banco Hipotecario, Bank of America, Banco Ciudad and Banco de Valores.
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Su Casita Makes It Four
Mexican mortgage lender Hipotecaria Su Casita has placed around $70 million worth of mortgage-backed securities (MBS), known in the local market as BORHIS. The paper, denominated in inflation-indexed investment units (UDIs), was issued in two series. This is the fourth offering so far this year by Su Casita, the largest home finance company in Mexico, which was planning to raise around $400 million this year via securitization issues. It sold $95 million-worth of MBS in August, $100 million-worth in June and $48.5 million worth in April.
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CAF Taps US Market For $200 Million
The Caracas-based Andean Development Corporation (CAF) tapped the US market for $250 million last week, increasing the issue up from an originally planned $200 million. The issue was twice oversubscribed. The bonds, which mature in 2017, offered a “highly competitive rate”, according to the Corporation and was bought by investors worldwide. The lead manager was Credit Suisse. Enrique García, president of CAF, commented that the issue was due to “the CAF’s permanent presence in the most demanding international scenarios” and was in line with the Corporation’s financial strategy “based on reducing costs and diversifying and broadening fund-raising sources on international financial markets”.
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Panama-Cabei Become Strategic Partners
Panama has advanced in its path towards joining the Central American Bank for Economic Integration (Cabei) by becoming a “strategic partner” of the Bank. Panama is looking to access financing opportunities to help with projects such as the widening of the Canal, stimulating growth in sectors such as tourism and energy, and improving human resource skills. Panama will become a non-regional member of Cabei and non-founding beneficiary before the end of the year with a contribution of $58.6 million.
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Fungible MBS For Mexican Market Set To Lower Rates
Mexico will soon see its first issuance of fungible mortgage-backed securities (MBS), according to Sociedad Hipotecaria Federal (SHF), the mortgage-finance arm of the country’s Development Bank. Two Sofols (Sociedades Financiera de Objeto Limitado), or specialized lending institutions, are ready to make an offering of the instruments after almost a year of preparation. The innovation in the market is set to lower interest rates by up to 1.5 percentage points for consumers, according to the SHF, as liquidity increases and efficiencies are made.
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CAF Agrees Colombia Loans
The Andean Development Corporation (CAF) has agreed to loans totaling $250 million to Colombia to strengthen its institutions and competitiveness. The first of two loans is for $150 million, to go to the Program of Reforms for Competitive Insertion in International Markets, which aims to improve the country’s competitive insertion, opening up and adapting the financial platform, and upgrading technology. The second loan, for $100 million, covers the Consolidation Program for Constitutional Reform in the area of pensions.