Fovissste Nears RMBS

Mexican government housing lender Fovissste plans to raise up to MXP5.5bn ($419m) through a domestic RMBS sale October 22, according to people familiar with the plans. Fovissste initially targeted a sale last week. The 26-year fixed-rate bond is denominated in UDIs and comes with a 23.2% partial guarantee from Mexico’s Sociedad Hipotecaria Federal (SHF). Proceeds will fund Fovissste’s lending. Banorte-Ixe, CI Casa de Bolsa and Actinver are managing the sale, rated AAA on a national scale. Fovissste last visited the local market in May, raising MXP6.87bn in a UDI-denominated 2043 issue which was priced at 2.58%, or Udibonos+180bp.