Infonavit Plans to Sell 3 Billion Pesos in Cedevis This Month

Infonavit, Mexico’s largest originator of mortgages, plans to issue about 3 billion pesos ($231 million) of securities known as Cedevis this month, according to the state agency.

The Mexican lender plans to sell the inflation-linked, mortgage-backed securities around March 21, Jorge Marquez, senior manager of the Cedevis program, said today in a telephone interview. The Mexican units of Citigroup Inc. and Banco Bilbao Vizcaya Argentaria SA will underwrite the sale, he said.

The securities will be backed by so-called Infonavit Total loans which are typically larger and given to higher-income clients, Marquez said. Infonavit is authorized to sell 10 billion pesos of Cedevis this year and may sell the rest of the securities in May, he said.

“There’s a scarcity value because we’re not going to issue as much as we did last year,” he said. Marquez said he met with potential investors in Mexico City today.

Infonavit last month sold about 5 billion pesos in securities backed by standard loans, given to lower income borrowers, according to Marquez. The agency sold 13.5 billion pesos in Cedevis last year and has about 70 billion pesos in the securities outstanding, he said.

To contact the reporter on this story: Ben Bain in New York at bbain2@bloomberg.net

To contact the editor responsible for this story: Jose Enrique Arrioja at jarrioja@bloomberg.net

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