Infonavit Nudges Open Mexican RMBS

Mexican mortgage lender Infonavit has priced a MXP2.02bn 22-year RMBS, the first mortgage-backed bond in Mexico since December. The UDI-denominated notes with an average life of 5.1 years priced at a fixed rate of 5.65%, or UDIbonos plus 228bp. Demand reached about 1.8x, according to bankers managing the sale. The AAA rated transaction is playing it safe with a single tranche, departing from a recent trend in Mexican RMBS for sales offering twin tranches amortizing one after the other. Banamex, HSBC and Deutsche Bank managed the sale. Mortgage lenders hope this will mean the reopening of the Mexican market, though it may be more difficult for non-government backed shops such as Su Casita. Infonavit brought the last Mexican RMBS offer in late December, a MXP2.16bn 2030 bond in UDIs, with both pieces priced at 5.55% and 6.25%, for the same tenor.