Following last week’s closing of a MXP4bn certificado de capital de desarrollo (CCD) transaction, Mexican specialty finance institution Navix is planning to securitize the loans in the CCD trust. The securitization could come as soon as the second year of the 10-year deal, Navix CEO Gonzalo Gil White tells LatinFinance. Additional transactions, for a $100m equivalent minimum, would follow every 12-18 months. The CCD, which will focus only on debt investments, will make loans to suppliers of Pemex and the CFE. “The opportunity was very evident to us because we have been financing companies from this sector for an extended period of time,” White says of the CCD. He points to an estimated Pemex capex budget of around $30bn per year through 2019. CFE also plans to spend $60bn over the next 4 years. White says Navix is using the CCD market as a tool to offer its funding on a larger scale and channel money from Mexico’s liquid pension funds into much needed infrastructure. “This was a very efficient way to allow institutional investors to participate in a sector they don’t otherwise have regulatory ability to invest in, and mitigate risk by structuring investment as a senior secured loan,” he says. Five Afores, a private pension fund and a few other private investors participated in the deal, in which Navix is co-investing MXP1.2bn of its own resources. The loans – mostly working capital facilities – can range from MXP10m-MXP700m in size. White says many of the suppliers are middle-market companies, which in general are underfunded by the banking sector and through less efficient products such as factoring and trade finance. Investors will receive interest from the loans and a portion of the loan fees, with Navix getting the remainder of the commissions and an administration fee, according to the documentation. Navix estimates an 18% return for investors. Banamex and Actinver managed the deal. White says another CCD might be possible in the future, but at the moment Navix