GC counsels HIR Casa on first issue of trust certificates
Gonzalez Calvillo has counselled HIR Casa (Bienes Programados) on the establishment and approval by the Mexican National Banking and Securities Commission (CNBV) of its new mortgage securitization programme for up to MXP$4,000 million, as well as on its first issuance of MXP$1,500 million of trust certificates (certificados bursátiles fiduciarios) under the programme listed on the Mexican Stock Exchange.
This transaction, which began in February and closed on 23 June, represented the return of a non-bank financial institution (NBFI) to the Mexican stock markets after previous complications for certain entities in the sector.
In addition, with the funds obtained as part of the offering, HIR Casa prepaid two financing facilities that were designed as lines for the origination of HIR Casa’s portfolio and its subsequent securitisation: a syndicated loan in which BBVA Mexico participated as lender and agent bank, as well as a simple secured loan also with BBVA Mexico.
The issue was rated AAA by Fitch Ratings and HR Ratings, and had a demand of 1.74x the target amount.
Banco Invex acted as issuing trustee, BBVA and Santander as placement intermediaries and CI Banco as common representative of the holders. Creel García-Cuéllar Aiza y Enríquez acted as advisor to the rating agencies.
GC’s team was led by partner Bernardo Reyes Retana (pictured), with support from associates Francisco J. Alvarez and Diego Hernández, and law clerk Erika Botas.
