IDB Backs First Peru RMBS Program

The IDB has issued a partial credit guarantee of 5% for a $100m RMBS program for Peru’s BBVA Banco Continental. The issue is understood to be the first mortgage securitization in that nation. The first package in the program, a $25m offer, priced last week at 6.75%. Demand reached $42m, from mostly Peruvian pension funds and insurance companies. S&P gave the deal AAA local and BBB- international ratings. The mortgage portfolio is concentrated in the cities of Lima, Callao, La Libertad and Arequipa.