Brazil’s leading mortgage originator Caixa Economica Federal today closed the R$232.8 million senior piece of its largest ever RMBS, said a source close to the transaction. The yield came to 10.5% over the TR, a benchmark savings rate.

The originators retained a subordinated piece totaling R$25.9 million. The deal could be a watershed, as the market had long anticipated a meaningful move by Caixa into the sector. Before this it had only one other RMBS under its belt — a small deal floated in late 2007 via ABN Amro.

Led by the capital markets team of Caixa itself and issued through securitizer Brazilian Securities, the new deal is remarkable in the breadth of the investor pool. Roughly 1,500 retail investors bought in, with four institutional investors rounding out the book. Fitch Ratings gave the senior tranche a national scale rating of ‘AAA(bra).’

The deal is formally the 203rd series of Brazilian Securities’ CRIs — the acronym for certificate of real estate receivables, the country’s main vehicle for securitizing real estate assets.

PMKA was the legal advisor and Oliveira Trust, the trustee.

The transaction is backed by 4,324 contracts with wide geographic distribution. The average weighted yield on the assets is 10.8% over the TR. Average seasoning is three years and average LTV 35%.



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