Titularizadora Eyes Debut Cross-Border MBS

Colombian mortgage securitization specialist Titularizadora Colombiana is analyzing options to issue what would be a debut cross-border mortgage-backed security (MBS), president Alberto Gutierrez tells LatinFinance. “We suspended plans for a cross-border bond in 2007 due to the crisis, but we have restarted the process and could issue in 2013,” he says. The lender is considering the deal based on market opportunity to issue cross-border MBS deals, potential for attractive pricing, and access to international investors. “It is important to access the international market as a new source of MBS funding,” Gutierrez says. Titularizadora is considering transaction of at least $250m, but has yet to define a specific structure or tenor, and will decide between dollars and Colombian Pesos. Colombia’s liquid local market has allowed Titularizadora to maintain a consistent presence there, allowing for 4 issuances per year and a total of 37 transactions over the course of 10 years to amount to $9bn dollars total. So far this year, Titiularizadora has issued 2 of its 4 annual issuances, and plans to issue its next local bond, of $200-$250m-equivalent at10 years, in August. It also plans to securitize consumer and auto loans this year, opting for local transactions that amount to $80-$100m-equivalent, likely at 7-year tenors, as it seeks to take advantage of its MBS expertise and branch out to other areas of securitization.