Titularizadora Colombiana Sells Fixed-Rate Peso TIPs

Titularizadora Colombiana – Colombia’s answer to Fannie Mae – successfully sold $118 million-worth (268,000 billion Colombian pesos) of its residential mortgage-backed securities or TIPs (títulos hipotecarias) Thursday, for the first time backed by fixed-rate mortgage loans in pesos. To date, Titularizadora has issued TIPs denominated in UVRs – an inflation-indexed currency unit. The TIPs were issued in two series, maturing in 2016 and 2021, and paying a fixed rate of 8.90% and have been rated AAA by Duff & Phelps. The loans backing the securities are originated by local banks Colpatria and Davivienda. The issue was 2.67 times oversubscribed, according to the issuer.