Peru’s Titulizadora Warms up Debut RMBS

Peruvian mortgage securitizer Titulizadora Peruana plans to issue $40m in 15-year RMBS as early the end of this month. The shop’s first issue will be backed by a pool of dollar-denominated mortgages originated by Banco de Credito del Peru and Interbank. Dollar-denominated loans make up about 75% of Peru’s mortgage market, explains Titulizadora CEO Enrique Oliveros, although there is a trend towards more sol-denominated lending. The shop plans to securitize sol-denominated loans in future issues and will look at the possibility of bonds with tenors longer than 15 years, which is contingent on the pickup in in longer-dated mortgages. Titulizadora expects a second issue of equal or larger size by the end of the year. Bookrunners have yet to be selected.