Mexican housing finance company Fincasa Hipotecaria paid its first visit to the market Feb. 18, pricing a Ps500 million (US$46 million), five-year deal backed by bridge loans for construction. The yield came to 152 basis points over three-month Cetes or its interpolated equivalent. Fitch Ratings and Standard & Poor's rated the deal AAA(mex)' and mxAAA' on the national scale, respectively. Native investment bank IXE was sole lead.

The Fincasa transaction opens the door for other housing lenders of smallish stature to tap the markets on a stand-alone basis, though players predict more joint originator deals along the lines of a RMBS issued between GMAC Hipotecaria and Su Casita last December. Peer companies that have preceded Fincasa in issuance are for the most part several times larger.

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