Titularizadora Colombiana priced Latin America's first nonperforming loan (NPL) deal June 10. The US$33 million-equivalent senior tranche of a five-year piece priced at a real rate of 4.7%, while the identically sized senior tranche of a seven-year piece priced at a real rate of 5.39%. "As a first-ever deal of this kind, we think the results are quite good," said Alberto Gutierrez, the president of Titularizadora.
The securitizer aims to do a follow-up NPL transaction in August with banks other than Banco Conavi and Banco AV Villas, which provided the pool for the present deal. The bid-to-offer ratio hit 1.8x and buyers were largely institutional investors. Fitch Ratings affiliate Duff & Phelps and stand-alone agency BRC Investor Service rated the senior chunks triple-A on the national scale.