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Mexico bustles with ABS activity as 2006 approaches

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Mexico’s domestic securitization market has shifted into high gear. Two transactions priced in the last couple of weeks and a handful of deals are packing the pipeline. On Nov. 18, the state of Chihuahua closed a Ps1.2 billion ($113 million), 10-year final, securitization of federal participation revenues via lead agent Acciones y Valores. Pricing was 27 basis points over 28-day TIIE and ratings were triple-A on the respective national scales of Moody’s de Mexico and Fitch Ratings. Three days earlier, highway operator Grupo Profrezac issued a Ps1.35 billion, 15-year final deal backed by toll receipts at 295 basis points over 91-day TIIE via sole lead Scotia Capital. Fitch rated the deal AA+(mex)’ on the national scale.

Meanwhile, deals loom on the horizon from originators Banco del Bajio, GMAC Financiera, Su Casita and Carlos Slim’s company Ideal. Bajio’s transaction is a first-time securitization of loans to states and state entities that could reach around Ps4.3 billion, a source said. GMAC Financiera is working on a bridge loans for construction ABS, while Su Casita aims to securitize peso-denominated mortgages. A source said that this would be a first for the originator, which has so far backed RMBS with only loans denominated in inflation-indexed units. Finally, Ideal has a securitization of receipts from toll road Tepic-Via Union on its agenda.

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