Mexican real estate-finance company Patrimonio priced a Ps800 million ($74 million) ABS last Wednesday. The Ps672 million, five-year Class I' notes priced at 125 basis points over 28-day TIEE, with 85% of that piece providing a yield the adjusts daily and 15% with one that adjusts monthly. The Ps96 million, 5.5-year Class II' notes priced at 320 basis points over 28-day TIEE, adjusting monthly. Fitch Ratings and Standard & Poor's rated both tranches triple-A and single-A on the national scale, respectively. The originator absorbed an unrated equity tranche worth Ps32 million. The collateral for the deal consisted of bridge loans for construction. The sole lead was Multivalores, with Valores Mexicanos as co-manager.
While institutional investors purchased the bulk of the triple-A notes, retail investors snapped up roughly half of the single-A paper, according to Jorge Lopez, director of corporate financing at Multivalores.
Multivalores plans to handle more securitizations in the sector. "We're working with another [real estate finance company] and one in the paper sector," Lopez said, adding that in the former sector the company is looking at residential mortgages in addition to bridge loans for construction.
Elsewhere in the Mexican market, Tuneles de Acapulco will likely issue a transaction in the second half of the year, according to a source familiar with the issuer. The originator, which holds a 25-year concession to operate the Acapulco Tunnel in the state of Guerrero, wants issuance to coincide with the amortization schedule of an outstanding bond that will be refinanced by proceeds from the new paper.
Amounting to 61 million inflation-indexed units ($20 million) at issuance, the existing deal priced on March 9, 2001, and matures March 15, 2016. Fitch rates the transaction AA(mex)' on the national scale. Revenue in real terms averaged growth of more than 19% between 1997 and 2003, according to a Fitch report.
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