After tripping on an MBS placement around the Christmas season, Santander definitively closed the deal at the end of January. Due to a paucity of investors at the launch, the bank held back Ps65 billon (US$22 million) of a five-year tranche. The unsold piece was brought to market a few weeks later at 5.5% over the UVR inflation index, unchanged from initial pricing. "We had trusts, treasuries at state and private companies, and banks buying up the paper," said a source close to the transaction.

At the end of the day, the transaction totaled Ps138 billion (US$47 million). The Inter-American Development Bank (IDB) provided a partial guarantee worth up to 10% of the issue. Legal counsel for the multilateral was provided by Sidley Austin Brown & Wood, which has been involved in other securitizations out of Colombia, notably of coffee export receivables and airline ticket receivables.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.