A major catalyst in reviving RMBS in Argentina, Banco de Credito y Securitizacion (BACS) has recently closed a warehousing credit line with the International Finance Corp. Under the terms of the credit, the multilateral will provide the bank with $50 million in two equal installments. Termed at three years, the line is Libor-based and secured by mortgage assets, including RMBS. The funding strengthens an existing relationship between the two, wherein IFC is a 20% shareholder of BACS.
The funding will add muscle to BACS' mortgage-acquisition business. "Since the crisis [following the currency devaluation in December 2001] what we've done is structure Banco Hipotecario's program," said BACS' CFO Rafael Rivero. Apart from structuring Hipotecario's program, BACS is also looking to re-package self-originated mortgages. "We expect to go out with a transaction backed by our own loans this year with at least Ps100 million ($32 million)," Rivero said.