Mexico's Patrimonio priced an Ambac-wrapped deal that is the tightest pricing ever achieved for a domestic structured transaction denominated in inflation-indexed units (UDIs), according to ASR data.
Sized at 264 million UDIs ($92 million), the 27-year final transaction priced at a real rate of 4.29%. The collateral consisted of mortgages originated by Patrimonio, which belongs to a group of nonbank financing companies known as Sofols. Fitch Ratings, Moody's de Mexico, and Standard & Poor's gave the deal triple-A on their respective national scales. Citigroup unit Acciones y Valores led the RMBS.
There are only a few UDI transactions in Mexico's structured market with yields below 5%. At least two them also have monoline wraps, one from FGIC and another from MBIA. An unwrapped UDI deal last month from RMBS fixture Infonavit also achieved pricing below 5%.
Unusual for a Mexican RMBS, the underlying loans in Patrimonio's deal didn't carry mortgage insurance of any kind. The pool consists of 2,608 loans with a weighted average interest rate of 9.69% and an LTV of 79.77%. The state of Nuevo Leon accounted for nearly a third of the loans, contributing 29% of the collateral by volume. Mexico State provided 27%, and North Baja California accounted for 15%.
Elsewhere, more details have emerged on an RMBS from Banco Mercantil del Norte (Banorte), a transaction expected to usher in other deals in this asset class from Mexican banks. To date, Sofols have monopolized RMBS issuance in the country, while regular banks, flush with cash, keep their distance (ASR, 11/6/06).
Banorte's deal has a senior/subordinate structure, with an A series worth Ps1.8 billion ($166 million) and a B piece totaling Ps180 million. Both have a legal final maturity of 14 years. On its national scale, Fitch Ratings has graded the senior slice AAA(mex)' and the subordinated piece A(mex)'. Banorte's brokerage arm is arranging the transaction.
The pool consists of 3,746 loans bearing fixed rates, according to the deal prospectus.
The average mortgage size as of September was Ps535,439 and the net weighted average rate 12.18%. The state contributing the highest volume of mortgages is Nuevo Leon, with 19% of the total. It's followed by the Federal District, the area encompassing Mexico City, with 16%, and Jalisco, at 14%.
Banorte is the fifth largest bank in Mexico, with respective asset and deposit shares of 8.2% and 9.2% as of March 2006, according to a Fitch report. Total assets reached Ps191 billion at the end of the first quarter.
First from Credito
Also up ahead out of the real estate sector is a first-time deal from Sofol Credito Inmobiliario, which is collateralizing construction loans to housing developers. Led by ING, the transaction is due out this week. It will have a senior/sub structure and will come under Ps2 billion, the cap on the program the issuer has registered with local regulators.
Elsewhere, Credito y Casa went through with its plans to price a deal despite news that Metrofinanciera is in talks to acquire its fellow Sofol, which has at least stalled one deal from the potential buyer.
Credito y Casa priced a senior/subordinate deal backed by construction loans last week. A Ps1.0 billion senior chunk, rated triple-A on the respective national scales of Fitch and S&P, priced at 96 basis points over 28-day TIIE. A Ps900 million subpiece, rated single A by the two agencies, yielded 200 basis points over. Santander led the deal.
There are a total of 94 debtors in the pool and the loans are linked to 6,415 homes. On average, the construction financed by the loans is 69% complete. Credito y Casa also has an RMBS in the works that is slated to price before the end of the year.
In the field of trade receivables, media giant Television Azteca has priced a deal to close out a program backed by airtime to be purchased by advertisers. The 14-year final transaction totaled Ps2 billion and priced at 138 basis points over the 28-day TIIE. Fitch rated the deal AA(mex)' on the national scale. Actinver arranged the transaction in an apparent debut in the local securitization market.
Proceeds from the issue, which is timed to close Dec. 11, will be used to refinance bank debt, according to a company source. The securitization program, totaling $6 billion, has a grace period of no amortizations for five years. After Azteca has retired its bank loans, the only debt apart from the securitization program is a $120 million long-term loan from a company unit, the source said.
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