Yet another global player has succumbed to the charms of Mexico's RMBS market. The Inter-American Development Bank (IDB) is in talks to provide a liquidity facility for a deal originated by housing finance company Hipotecaria Nacional, according to sources. Citigroup Global Markets is structuring the transaction.
This would mark a first for the IDB in the Mexican market, which has already drawn other multilaterals like the International Finance Corp. and Dutch development bank the FMO. A US$53 million-equivalent MBS for Su Casita and GMAC that inaugurated this sector last December carried a liquidity facility from the FMO for up to 9% of the transaction. At the time, an FMO official said liquidity was chosen over a partial guaranty because drawing on the facility was simpler.