Kuri Breña advises Crédito Real on loan securitisation

Mexican law firm Kuri Breña, Sánchez Ugarte y Aznar has advised Crédito Real on the securitisation of account receivables deriving from loans granted to retirees.

The securitisation was carried out through the issuance of trust certificates for 750 million pesos ($39.2 million) with a maturity of five years, and the issuance was the first under a new program authorised by the National Banking and Securities Commission (CNBV) for 10 billion pesos. The transaction was rated ‘AAA’ by Fitch México and HR Ratings.

The transaction represents the securitisation of loans granted to retirees that are paid through discounts made by the Mexican Institute of Social Security (IMSS). IMSS transfers such payments to the accounts of two master trust agreements that manage the collection of the receivables. Additionally, the structure is designed to allow Crédito Real to acquire the monetised loans from three different entities, which are responsible for administrating the loans under the supervision of Crédito Real.

The firm’s lead lawyers on the case were Daniel Kuri Breña Romero de Terreros and Álvaro Sarmiento Lapiedra.