SHF Mulls Overseas Issue

Mexico’s Sociedad Hipoteca Federal (SHF) is working on a return to the long-term debt markets, perhaps in the international markets, in order to meet its funding needs. “We are talking with the IDB about a guaranteed product to issue overseas,” says Pedro Guazo, CFO of SHF, adding that the target tenor would be 10-15 years. He adds that SHF will maintain its short-term debt auctions and raise medium-term funding to meet its needs. Guazo says SHF has not tapped the long term markets since 2005. Last year, before the crisis, it obtained a 25-year $2.5bn IDB loan at Libor flat, and a 30-year $1bn World Bank loan, also at Libor flat. Speaking on a panel at LatinFinance’s Cumbre Financiera Mexicana, he says SHF is also aiming to offer mortgage issuers with guarantees for construction bridge loans in the same way it does for RMBS issues, and hopes to have that ready in the next few months.