IDB Supports Metrofinanciera

The Inter-American Development Bank (IDB) has approved $105 million in partial credit guarantees to Mexican mortgage lender Metrofinanciera. “Up to $55 million in partial credit guarantees will assist Metrofinanciera in obtaining a mortgage warehouse facility of $175 million from an international commercial bank to originate and accumulate mortgage pools prior to securitization”, announced the Bank. A mortgage-backed securities (MBS) guarantee facility of up to $50 million will provide partial credit guarantees for the issuance of Metrofinanciera-originated MBS in the Mexican capital market. The Bank said it was aiming to help develop Mexico’s MBS market as well as helping the Mexican lender as it moved away from public-sector funding to raising funds via the capital markets.