Infonavit expects lower cost of funding for US$1.25bn bonds it could issue this year

Tuesday, January 18, 2011

Mexico's state mortgage lender, Infonavit, aims to sell 15bn pesos (US$1.25bn) of mortgage-backed bonds - known as Cedevis - on the domestic market this year, local daily El Economista reported the lender's deputy director general, Roman Alvarez, as saying.

Alvarez said he expects Infonavit to pay lower interest rates on its bonds this year because at the last Cedevis issue in 2010, the lender paid 4.15% - the lowest rate since 2004.

Infonavit sold Cedevis worth 13.7bn pesos last year, surpassing its initial goal of 10bn pesos.

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The funds raised in 2010 financed 71,000 mortgage loans.