Fovissste Prices RMBS

Mexican government housing agency Fovissste has sold MXP4.06bn ($317m) in domestic inflation-linked bonds backed by mortgage loans. The 2041 notes with a 5.4-year average life pay 4.65% and were priced at UDIbonos +263bp, inside 4.70% guidance, and 5bp wide to Infonavit’s MXP3.1bn UDI-denominated RMBS priced at 4.60% earlier this month. The transaction was heard 1.4x subscribed with Afores, pension funds, insurance companies and private banking accounts participating. BBVA Bancomer managed the transaction, rated AAA on a national scale. The government-backed lender got 4.60%, or UDIbonos+283bp, on its previous deal, a 30-year MXP4.309bn sale, priced in December.