Titularizadora Colombiana Places MBS

Colombian securitization shop Titularizadora Colombiana has sold COP236bn ($100m) worth of MBS locally with institutional investors. The 2018 notes have an average life of 2.2 years and were priced at par to yield 5.99% over the UR inflation-linked index, says Mauricio Amador, vp of finance at Titularizadora. The rate was determined through an auction held Wednesday, whose maximum level was 6.50%. The notes are backed by mortgages originated by Bancolombia, AV Villas, Colmena and Davivienda. Half the issue was done Wednesday with pension funds, trusts and financial institutions, while the remainder will be underwritten and placed with banks, including those who originated the mortgages. The 2018 senior notes are rated AAA on a national scale. Nine Colombian banks and brokers served as placement agents. Titularizadora is considering issuing another batch of MBS before year-end, says Amador. The deal would involve the sale of fixed rate notes and likely be larger than yesterday’s $100m issue.