• This is the largest transaction ever involving mortgage-backed bonds in Mexico or Latin America in terms of volume, and the issue raised more than MXN6.88bn.
  • The issue was overbid by 2.8x.
  • BBVA Bancomer once again participated in a FOVISSSTE Program, acting as Co-Lead Underwriter for the issue. In 2012, the institution reached its goal of placing approximately MXN19.20bn.

As Co-Lead Underwriter, BBVA Bancomer successfully completed the placement worth more than 1.03bn UDIs, equivalent to MXN6.88bn pesos in Trust-Backed Securities Certificates issued by the Institute for Social Security and Services to State Workers (FOVISSSTE), in which the bid-to-cover ratio was 2.8x.

This was the largest mortgage-backed bond transaction ever in Mexico or Latin America in terms of volume. The issue received a rating of AAA on a local scale from two rating agencies (Standard & Poor's and Fitch).

The issue was also actively traded by public pension funds, money desks, mutual funds and private banks, and bond holdings in this issue are highly diversified: public pension funds 42%, money desks 30%, mutual funds 19%, and private banks 9%.

Although this issue has a legal term of 30 years, the average maturity of the bonds is six years in a stable market climate.

According to Adrian Otero, General Director of Global Clients for BBVA Bancomer, "BBVA Bancomer will continue to stand beside our clients in market debt placements, which will enable us to keep up a strong presence in the market." He also remarked this is the fourth year in a row in which the financial group has worked with FOVISSSTE and this transaction proves that investors remain interested in the Mexican debt market.