In a persuasive sign that concerns have faded in Mexico over contentious presidential elections, state mortgage agency Infonavit priced the domestic market's largest RMBS ever at a rate lower than a deal the agency issued in mid June, roughly two weeks before the vote.
The issuer placed a deal for 413 million inflation-index units (UDIs) ($141 million) at 5.09% compared to June's yield of 6.25% on an RMBS totaling 273 million UDIs. The spread also tightened, to 115 basis points over comparable local treasurys from 125 basis points. Buyers included pension funds, bank desks, insurance companies and private banking, according to a source close to the deal. Fitch Ratings and Standard & Poor's rated the deal triple-A on their respective national scales.
Meanwhile, nonbank housing finance company Fincasa priced Mexico's first RMBS that can be re-opened repeatedly. The transaction amounted to 135 million UDIs and priced at 5.10% via joint leads Deutsche Securities and IXE. The final legal maturity is 2040. Fitch and S&P rated the transaction triple-A on their respective national scales.
Elsewhere in Mexico, Television Azteca is readying a Ps6 billion ($550 million) program backed by airtime to be purchased by advertisers, similar to a Ps1.4 billion transaction the media company placed in September 2005. The first deal of the program is projected to reach Ps4 billion and have a maturity of ten years, with Value as lead. Inversora Bursatil was the lead arranger on last year's transaction. The upcoming deal is expected to price before the end of the year.
TV Azteca beams its signal to a third of the national television market through Channels 7 and 13. The company runs one of the most extensive Spanish-language media empires in the world.
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