Infonavit, Mexico’s largest originator of mortgages, plans to sell securities known as Cedevis denominated in pesos for the first time since 2004 next year, according to the state-owned agency.
The Cedevis, which are Mexican mortgage-backed securities, may attract foreign investors that don’t currently hold them, Jorge Marquez, the senior manager of the Cedevis program, said in an interview today in Mexico City. The agency may sell peso-denominated Cedevis in the first half of next year, he said.
Less than 0.2 percent of outstanding Cedevis are currently denominated in pesos with nearly all of them in inflation-linked units known as udis, Marquez said.
“We will diversify our investor base,” he said. Peso-denominated issuance will mean foreigners may enter the market “since they’re more used to that currency,” Marquez said.
The agency plans to issue the peso-denominated securities after Mexican President Felipe Calderon signed into law a bill earlier this month that will allow the agency to issue loans in the Mexican national currency in addition to units tied to minimum wages, Marquez said.
The peso-denominated Mortgage-backed securities will be benchmarked to Mexico fixed-rate government debt known as Mbonos.