Securitizability.com

International law firm Allen & Overy advised FMO, the Dutch development
bank, as the senior credit enhancer on the securitisation of the
mortgage-backed loan portfolio of Hipotecaria Crédito y Casa, S.A. de C.V.,
Sociedad Financiera de Objeto Limitado (CyC), a Mexican mortgage lender.
This transaction represents a landmark for Mexico's low-income National
Housing Program, as it was one of the first securitisations in the Mexican
market made by a Sofol - Sociedad Financiera de Objeto Limitado - with an
international credit enhancement.

The securitisation comprised the issuance by a Mexican trust created by CyC
for this transaction of Ps$1,000,000,000 (Mexican pesos) in bonds in the
domestic Mexican market. The trust then used the proceeds of the bond issue
to acquire the loan portfolio and the mortgages from CyC. The credit
enhancement from FMO was provided in the form of a stand-by liquidity
facility to the trust.

Historically, Mexican banks have not been providers of mortgage lending for
low and middle-income Mexicans. More recently Sofoles have provided such
financing. They are special purpose financial companies that originate and
service almost 90% of low-income mortgages and bridge loans for developers
of low-income homes. Sofoles obtain their funding mainly from FOVI - Fondo
de Operación y Financiamiento Bancario a la Vivienda and Infonavit -
Instituto del Fondo Nacional de la Vivienda para los Trabajadores.

Senior Investment Officer Remco Polman of FMO noted that:
"This transaction was very important for FMO as it expands its operations
throughout Latin America, particularly in Mexico. Given the success of this
deal, FMO expects new opportunities in the mortgage securitisation market in
Mexico."

Commenting on the transaction, Marun Jazbik, co-head of Allen & Overy's
Latin America practice, said:
"This was a highly complex deal and one of the first mortgage-backed
securitisations with international credit enhancement. We were pleased to
advise FMO in this transaction."

The FMO team was led by Remco Polman, Investment Officer, and Lex Pfaeltzer,
Senior in-house Counsel.

The Allen & Overy team was led by partner Marun Jazbik with assistance from
Frederico Buosi. Creel, García-Cuéllar y Müggenburg, S.C. (partner Jean
Michel Enriquez and associate Pedro Morera G.) advised on Mexican law
matters.

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ALLEN & OVERY ADVISES FMO ON Ps$1 BILLION SECURITISATION