Mexico's largest mortgage lender,federal housing fund Infonavit,announced,this week,that it plans to raise a record $450 million (5.62 billion pesos) by issuing bonds on the Mexico Stock Exchange.
As Mexico mortgage credit is expected to soar by 15% this year,the government fund is raising record amounts on financial markets and expects to lend up to 525,000 home loans in 2010.
The new round of fund raising will be achieved through the sale of 28-year bonds called "UDIs",in two tranches on June 16,with Citigroup and HSBC banks acting as agents.
This will be the fund's second bond issue this year,following their successful sale of $397 million (4.93 billion pesos) in March and a $200 million sale in November.
Infonavit is expected to sell bonds up to a total value of $1.25 billion (15.5 billion pesos),this year,to help keep up with booming demand for Mexico mortgage loans.
As well as increased mortgage credit helping the domestic market,the extra liquidity will continue to increase the availability of Mexico mortgage products for foreign nationals.
Mortgage loans have become much more accessible for foreigners in recent years. A number of lenders have entered the market for overseas borrowers and competition is producing well-priced Mexico mortgages,often with lower costs than in the borrower's home country.
Visit our financing pages to compare more than 248 Mexico mortgage loans.