© 2026 Arizent. All rights reserved.

Santander Mexico gets busy before the holidays

Published 2 Min Read

Bankers at Santander in Mexico are working overtime before the holidays. Besides an upcoming deal for the state of Mexico (see ASR 12/02 pg. 19), the Spanish bank has just launched a program for the highway system of the state of Chihuahua. In late November, it priced Ps1.4 billion (US$136.3 million) at a real rate of 7.5%, which translates to as spread of 175 basis points over inflation-indexed treasuries. The structuring agent is Corporativo en Finanzas.

With an overcollateralization of 2.1 and a reserve fund equal to 15 months of payments, the 10-year Chihuahua deal won a AAA’ national-scale rating from Fitch Ratings and AA+’ from Standard & Poor’s. It is backed by toll road revenues from nine highways in the state.

The entire program amounts to Ps2.5 billion (US$243.4 million). Santander expects to issue another chunk this month and is aiming for Dec. 17, said a source close to the transaction. The bulk of proceeds on the initial issue went to repay debt owed a government bank and to set up the reserve fund. Subsequent issues will bankroll new infrastructure projects in the state.

As of press time, Santander had slated a Ps800m (US$77.9 million) ten-year bond for the Mexican municipality of Guadalajara on Dec. 6 or Dec. 9 (see ASR 12/02, p.19). Fitch has already rated the deal AAA’ on the national scale. S&P is rating the transaction as well. Pricing will come on top of three-month or six-month Cetes.

For reprint and licensing requests for this article, click here.

More From Asset Securitization Report

Consumer Debt Mania in Mexico and Brazil: What Does It Mean for ABS?

Once exclusively available to the well-to-do, credit has been descending the socio-economic ladder in Mexico and Brazil during the past few years. Easing interest rates and healthy growth, among other factors, are inducting more low-to-middle income borrowers into the credit culture club of Latin America’s two bulkiest economies. Depending on the particular asset class, ABS […]

New Playbook For Monolines in Mexico

For monolines in Mexico, the rules of the game have changed. Last month, FSA, and shortly thereafter MBIA, announced that they had secured licenses to provide wraps locally. Prior to that, FSA and MBIA – like others in the field – had to receive an exemption from regulators to insure public deals, which required them […]

Patrimonio appears to take UDI yield to new low in RMBS

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 […]

Mexican issuers keep up flow despite turbulence

While global volatility has contaminated Mexico’s domestic markets, it hasn’t stopped originators from issuing paper over the last couple of weeks. But the word is that presidential elections set for July 2 will deter issuers from coming to market over the next two weeks and for about a week following the vote. The pipeline, though, […]

MBIA taps Mexico shelf for first time

MBIA has made a debut placement off its Mexican shelf, the first issuance program a guarantor has set up in pesos. The kickoff deal, for toll road operator Promotora y Administradora de Carreteras (Pacsa), came to 1.5 billion UDIS ($500 million), with 1.1 billion in senior notes wrapped by MBIA. That’s just a nick in […]