Mexico's domestic securitization market kept up a brisk tone through the end of 2002, boding well for a country that is drawing increasing attention from bankers on the Street. As expected, Santander kept the market alive in late December. The Spanish bank came out with the second of three issues from a trust backed by payroll taxes in the State of Mexico. The deal is structured by Protego Asesores, with Thacher Proffitt & Wood providing legal counsel (see ASR 10/2, p.19).

A five-year floater totaling Ps245 million (US$23 million) yielded 300 basis points over three-month Cetes treasuries, the same rate as the first Ps334 million (US$32 million) issued in early December. An eight-year fixed-rate slice worth Ps619 million (US$59 million) priced at 12.5%, 50 basis points tight to the first issue of Ps186 million (Ps18 million). So far, a total Ps1.38 billion (US$132 million) has been issued under a Ps2 billion (US$192 million) program. Timing has not been fixed for the third and final issue.

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