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FSA Guarantees Crédito Inmobiliario's First Securitization of Construction Loans
Mexico City, December 13, 2006 - Financial Security Assurance (FSA) will guarantee Ps 657.5 million of 10-year floating rate Certificados Bursátiles (CBs) issued by HSBC México, S.A., as Trustee. The peso-denominated CBs will be secured by a revolving portfolio of housing development loans originated and serviced by the non-bank finance company Crédito Inmobiliario S.A. de C.V. (Crédito Inmobiliario) in its first securitization. FSA will also guarantee any draws under a related liquidity facility of up to Ps 196.6 million provided to the trust by ING Bank (México), S.A. de C.V. Lead arranger is ING (México), S.A. de C.V., Casa de Bolsa, ING Grupo Financiero. The bonds are rated AAA based on FSA's guaranty of timely payment of principal and interest.
The underlying assets are specialized construction loans for developers of low- and middle-income housing projects.
"Judging from the demand for this first securitization, we believe that we have opened an important new channel of funding for the future," said Gerardo Sierra, chairman of Crédito Inmobiliario. "The success of this offering demonstrates not only the value of such an insured securitization but also the broadening opportunities in the Mexican domestic market for asset-backed securities."
"Combined with the FSA guaranty, the asset-backed structure allowed Crédito Inmobiliario to raise funds at an attractive rate in the domestic market," said Eduardo Ramos, FSA's managing director for Latin America. "We believe securitization will help provide significant liquidity for continued growth in Mexico's low- and middle-income housing sector, because it gives lenders an efficient means of diversifying their funding sources."
This is the first domestic transaction guaranteed by FSA in Mexico.
About FSA
Financial Security Assurance Holdings Ltd. (FSA Holdings) is a New York-headquartered holding company whose subsidiaries provide financial guarantees in both the public and private sectors around the world. Its principal operating subsidiary, Financial Security Assurance Inc., is a leading guarantor of municipal bonds, infrastructure financings and asset-backed securities. Financial Security Assurance (U.K.) Limited is a U.K.-licensed subsidiary of Financial Security Assurance Inc. Guarantees issued by these subsidiaries carry the highest ratings available from Fitch Ratings, Moody's Investors Service, Inc., Standard & Poor's Ratings Services and Rating and Investment Information, Inc. FSA Holdings is a member of the Dexia group, the world leader in public finance. For additional information, visit www.fsa.com.
THIS PRESS RELEASE IS NOT AN OFFER FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933