Bracing a weak Mexican bank system, Mexican bank Banorte was on roadshows last week with a $250 million securitization of U.S. dollar cash flows generated by non-electronic remittances. NationsBank is the lead manager and expects to close the deal by the end of June. The remittances will be transferred to Banco Mercantil del Norte, Banco del Centro and Banpais, all of which belong to the Banorte financial group. The assets include money orders, traveller's and personal checks drawn on U.S. financial institutions, checks issued by U.S. governmental agencies and U.S. postal orders.
The offering is structured in two tranches: a $150 million wrapped piece rated double-A by Standard and Poor's and triple-A by Duff and Phelps and a $100 million unwrapped chunk rated Baa1 by Moody's. The notes in the $150 million tranche carry a seven-year final maturity and a four-year average life, while the notes in the $100 million tranche have a five-year final maturity and a 3.2 average life.