After a strong 2010 in Colombian structured finance — issuance grew more than 50% from 2009 — Fitch Ratings sees reasons for a repeat performance in 2011. Placements hit $7.8 billion last year, from a variety of companies in the corporate and financial sectors. The country’s Fannie Mae-esque Titularizadora Colombiana accounted for 28% of all issuance in 2010, turning out three peso-denominated RMBS and three inflation-indexed RMBS. The withdrawal of a tax credit for RMBS buyers should cut into volumes this year, but other asset classes are primed to pick up the slack, the agency said. Titularizadora itself may be involved in some of these as the agency has set up an offshoot to securitize non-housing ABS, such as auto loans, and expects to start issuing this year. Government-backed deals to fund infrastructure are also on the horizon, Fitch said.
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Meanwhile, Colombia’s neighbor Peru led cross-border issuance in the region during 2010, totaling $500 million. Scotiabank Peru and BBVA Continental originated transactions backed by diversified payment rights (DPRs) last year.
Government-linked deals designed to fund infrastructure also materialized last year, and the rating agency sees more up ahead.
“Fitch expects continued activity from Peruvian sponsors in the international ABS market throughout 2011 as high initial capital investment projects will continue to make use of frameworks set up by the Peruvian federal government to facilitate private funding.”