Infonavit RMBS Udibond Oversubscribed

Mexico’s Infonavit issued MXP4bn in UDI-denominated RMBS today, after receiving over MXP10bn in demand, according to a banker on the deal. The bonds were priced at 202bp over the 2016 benchmark, to yield 4.95%. Price talk for the yield was 4.8%-5%. Pension funds, treasuries, brokerage houses and private banks bought the paper. The 2039 bonds have an average life of 4.4 years and are rated AAA on a national scale. HSBC and Banamex managed the sale. Use of proceeds was the creation of new mortgages.