Edomex Pushes Back

State of Mexico (Edomex) is moving until later this month a novel MXP4.3bn 20-year deal securitizing future flows of income from residential property title fees, according to a banker running it. A deal had been penciled in for June 8, but a 1-2 week delay is now expected, owing to holdups at the regulator. Edomex would mark the first sizeable non-residential mortgage ABS in Mexico since the federal government raised MXP32bn on behalf of its states in a transaction backed by the FEIEF oil stabilization fund in September. Edomex has been working on the transaction since the middle of last year. The 2030 deal has a 14-year average life, pays fixed rate and is divided into 2 tranches. A MXP3.0bn tranche will feature a 100% guarantee from OPIC, while a MXP1.3bn slice carries a 30% first loss guarantee from CAF. Both portions are expected to be rated AAA on a national scale. Banamex and HSBC are managing the sale, which is structured by MBIA. Elsewhere in MXP ABS, government mortgage lender Infonavit is expected to return to the cedevis market June 16.