SuCasita, ING Hipoteca Price Bonds

Mortgage lender Hipotecaria Su Casita priced MXP1.9bn in 2033 RMBS denominated in UDIs. A 209.3m UDI (MXP837.6m) senior tranche with a weighted average life of 3 years priced at 159bp over the UDI Bono. A second 221.6m UDI (MXP886.7m) senior tranche with a weighted average life of 12 years priced at 174bp over the UDI Bono. A 43.5m UDI (MXP174.2m) subordinated tranche priced at 405bp. The first and second senior tranches were 3.3x and 2.9x oversubscribed, respectively, and had been expected at 150bp-160bp. The AAA locally-rated transaction was managed by Santander and HSBC. Separately, mortgage lender ING Hipotecaria priced MXP750m in 2011 bonds at TIIE plus 41bp. The transaction had been expected at anywhere between 40bp-50bp, and was 2x oversubscribed. Proceeds repay the lender’s maturing debt. Santander led the AA rated transaction.