Infonavit RMBS Falls Flat

Mexican mortgage lender Infonavit has sold MXP2bn equivalent in 2030 RMBS denominated in the UDI inflation-linked unit, the low end of an expected MXP2bn-MXP3.5bn range. An MXP1.2bn first tranche priced at 4.40%, and a second MXP800m tranche, which amortizes after the first, came at 5.38%. Guidance had not been issued, according to an Infonavit official, as the total amount was still being set as of Tuesday. The amount placed suggests the deal was a flop, but Infonavit nonetheless states that demand for the cedevis, as calls its mortgage-backed paper, was 1.93x what was placed, from 21 institutional investors. The bonds are rated AAA on a national scale. Banamex and Deutsche Bank managed the transaction, with HSBC as co-manager. The issue will bring Infonavit’s 2008 Cedevis issuance to almost MXP9bn. The lender had initially targeted MXP15bn for this year on the back of some 500,000-600,000 home loans but rocky market conditions have caused issuers to delay or scale back.