Mexican low-income home-builder Consorcio Hogar S.A. is getting ready to launch its first ABS deal. The company expects to hit the market with approximately P200 million ($21.7 million) in bonds by May and Casa de Bolsa Ixe S.A. will be the arranger. "If this first deal is successful it will be just the beginning for us," explained Alberto Baz, Hogar's chief financial officer. "Eventually, we hope to raise P450 million in financing."

The transaction will not only be the first one for Consorcio Hogar, it will also be Mexico's first securitization of revenues from low-income housing projects. The projects are commissioned by the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit), a government sponsored housing program that provides subsidized mortgage loans to lower-income households (ASRI 1/17/00, p.3).

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