A domestic Mexican CMBS with a number of multinational companies attached, including Wall Mart, is expected out in the first quarter of next year, said a market source familiar with the matter. The planned size is Ps1 billion ($75 million), with a ten year maturity.
The deal is largely backed by leases paid by companies using industrial properties as distribution centers. Another portion is linked to a retail center anchored by Wall Mart. The transaction features a target amortization, while the amortizations can be deferred without penalty up to 8.5 years into the life of the bond, the source said. He added that the average LTV is expected to be low enough and DSCR high enough for the deal to earn top ratings.
CMBS has always been a quiet corner of the Mexican structured finance market, even during the brisk RMBS activity of a few years ago. To date, there has only been a handful of CMBS in the country.