Mexico's Scotiabank Inverlat is poised to inaugurate auto-loan backed deals on the south side of the Rio Grande. Confirming the buzz that circulated last month, the bank has a mandate for originator Servicios Financieros Navistar, a wholly owned subsidiary of U.S.-based Navistar International Corporation (see ASR 8/9, p.1). The program is set at Ps1.1 billion ($95 million), with a debut transaction of Ps500 million, according to a source on the deal. Timing is for October, as the shelf has not been submitted to regulators yet.
Instead of being auto loans per se, the collateral is actually comprised of truck and bus loans. Mexican state development bank Nacional Financiera is expected to provide a partial guaranty of no less than 17% of the Class A notes, which will make up 96% of total issuance. Moody's de Mexico has given the deal a preliminary rating of Aaa.mx' on the national scale. Standard & Poor's is heard rating the deal as well. While all the loans in the underlying pool initially carried fixed rates, about 41% will eventually reset to a floating rate of 6% over the benchmark TIIE.