Infonavit Builds its Largest RMBS

Mexico’s Infonavit sold MXP4.973bn ($391m) of RMBS Wednesday, marking its largest ever issue of this kind in the domestic markets. The state mortgage lender issued a UDI-denominated 28-year bond with 6.2 year average life that priced at 4.50% or 280bp over the government’s UDIbonos, falling in line with 4.45% area price talk. The transaction was heard 1.41x oversubscribed after over 70 accounts participated, including private banking, insurance companies, investment funds, pension funds and bank treasuries. Proceeds will be used to create new mortgages. Banamex and HSBC led the transaction, rated AAA on a national scale. Infonavit plans to issue its next bond issue, a MXP3bn in 28-year UDI-denominated bonds with Banamex and BBVA Bancomer in March or April. Infonavit’s last bond was issued in December, a MXP1.1bn 2039 that priced at UDIbonos plus 264bp, locking in the lender’s lowest coupon for the year at 4.45%. Banamex led that transaction, rated AAA on a national scale. The state mortgage lender’s deal comes under a new MXP10bn program.