Mexico Home Lender Preps Jumbo RMBS

Amid a regional revival in securitization, Mexican mortgage lender Fovissste is planning to sell MXP3.5bn in 2039 UDI-denominated RMBS June 24, its first ever use of the structure, according to bankers managing it. The government-backed lender to federal employees is using a similar model to Infonavit’s MXP2bn May transaction to raise funds in what remains a very challenging market. A simple structure from the government-backed lender is the only way to get RMBS deals sold in Mexico, says a banker on the deal, who adds that this is likely to be the case through the end of the year. The 7-year average life issue is backed by a portfolio of 18,835 of mortgage loans originated by Fovissste, the nation’s second-largest home lender after Infonavit. The transaction, the first from a MXP20bn shelf, is rated AAA on a national scale. Banorte, Ixe and Merrill Lynch are managing the deal, with Goldman Sachs joining the trio as structuring agent. Infonavit priced its MXP2bn deal May 21 at 5.65%, or UDIbonos plus 228bp, and is preparing another for early July.