BBVA Places Record Mexican RMBS

Despite rotten market conditions, BBVA Bancomer has placed MXP4.829bn equivalent in UDI-denominated 2033 RMBS, the largest MBS sale to date from Mexico. Although liquidity remains ample among Mexico’s institutional investors, widening spreads and general volatility have scared RMBS issuers into waiting or downsizing. “It’s been a challenging year, but Bancomer is one of the strongest banks in Mexico, and the collateral backing this issue has a strong payment record,” says Moody’s’ Carlos Benavides, noting the assets’ few historical delinquencies compared to other transactions Moody’s has rated this year. BBVA was heard wanting to come this week – at what might be seen as a difficult moment – to avoid clashing with Pinfra’s MXP6.5bn structured transaction to refinance debt on the Mexico-Toluca road concession. The first MXP2.415bn tranche on BBVA’s deal priced at 4.61%, and a second same-sized tranche, which amortizes after the first, priced at 5.53%. Both mature in 2033. Each tranche was 1.2x subscribed by nine and 14 buyers, respectively, according to a banker on the sale. Afores and mutual funds made up most of the book. BBVA’s capital markets unit managed the sale and says guidance was not issued.