NEW YORK, – LAWFUEL – First for law news – Allen & Overy advised GMAC Financiera, S.A. de C.V., Sociedad Financiera de Objecto Limitado (GMAC Financiera) in connection with its groundbreaking mortgage-backed securitization (MBS) and the issuance of certificados bursatiles (Mexican Bonds) in the Mexican capital markets, as well as to a small number of investors outside Mexico. Banco JP Morgan, S.A., is the issuer and trustee (the Trust) for the Mexican Bonds, Casa de Bolsa Credit Suisse First Boston (Mexico), S.A. de C.V. (CSFB) acted as the underwriter and Mijares, Angoitia, Fuentes y Cortez acted as the Mexican lawyers to GMAC Financiera.
The Mexican Bonds, backed by a pool of Mexican residential mortgages valued at 315 million UDIs with a 30-year maturity, are part of a 1.7 bn UDIs program. GMAC Financiera, contributed the mortgages to the Trust issuing the Mexican bonds and Hipotecaria Nacional, S.A. de C.V., Sociedad Financiera de Objeto Limitado, will service the mortgages, and GMAC Financiera will act as the servicing supervisor agent.
José Landa (Managing Director for Latin America) from GMAC Financiera commented:
“This is a groundbreaking transaction for GMAC Financiera and the Mexican mortgage market because it continues the development of the local MBS market that creates liquidity to mortgage assets. Additionally, the demand for the deal confirms the interest of institutional investors for mortgage-related investments.”
Hans Geberbauer from GMAC commented: “Allen & Overy’s experience with international mortgage-backed securitizations, coupled with its long history as legal advisor to GMAC-RFC’s international business worldwide, made the firm an obvious choice as our counsel when we began to build our Mexican securitization program. Allen & Overy’s familiarity with GMAC-RFC’s international securitization standards was key to the success of this transaction and the development of our Mexican securitization program.”
The Allen & Overy team was led by Cathleen McLaughlin, head of the Latin America department, and assisted by Dennise Calderon-Barrera (as to U.S. law) and Hugo Jolliffe (as to UK law). The Mijares, Angoitia, Cortés y Fuentes, S.C team was led by partner Jose Ráz-Guzmán Castro and assisted by Manuel Echave Pintado.
The underwriter, CSFB, was advised as to Mexican law by García-Cuéllar y Müggenburg, S.C., led by partner Carlos R. Aiza and assisted by Rodrigo Castelazo de la Fuente, as to U.S. law by Jeffrey Stern, assisted by Joshua Wishnia of Stroock & Stroock, and as to UK law by Edina Cavalli of Cameron McKenna.