Chadbourne & Parke represented FOVISSSTE (“Fondo de la Vivienda del Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado”) in the successful placement of its fourteenth mortgage loan portfolio securitization, known as TFOVIS, which amounted to $416 million. The settlement of the Issuance on the Mexican Stock Exchange (BMV for its Spanish Acronym) took place on October 31.
FOVISSSTE is the mortgage fund for government employees in Mexico. It forms part of Mexico’s social security agency for workers in the public sector (“ISSSTE”) and has the objective to manage the contributions from ISSSTE’s affiliates in order to grant accessible mortgage loans that are affordable and manageable for public sector workers.
FOVISSSTE has originated the second-highest number of mortgages nationwide. It attends a potential population of more than 2.3 million individuals and currently manages more than 1.2 million loans, which are diversified by State, product, office, or Entity, among other factors. Standard & Poor’s gave FOVISSSTE an “Above Average” note as “Residential Assets Administrator,” as well as one in the highest national scale as “Counterparty.”
Since June 2009, FOVISSSTE has participated in the placement of 14 domestic mortgage backed securitizations under the “TFOVIS” placement programs for an accrued amount of approximately $5.1 billion; 2 placements of domestic mortgage backed securitizations under the “BonHiTo” placement program for an amount of approximately $459 million; and the placement of a private cross-border mortgage backed securitization for an amount of approximately $458 million.
All 14 TFOVIS issuances received a “AAA” domestic rating by Moody’s, Standard & Poor’s, Fitch Ratings and HR Ratings, the four authorized rating agencies to operate in Mexico. The cross-border securitization is the largest cross-border RMBS done in Latin America and was completed by FOVISSSTE during the volatility in the international markets, with Goldman Sachs International acting as placement agent, and received a “AAA” domestic rating by Moody’s and Fitch Ratings.
Chadbourne has successfully acted as transaction counsel in all these securitizations.
Working for Chadbourne on the deal were Mexico City partners Boris Otto and Alejandro Landa and associate José Carrillo.
