CrediTú has had mortgage assets placed in the market via a AAA long-term bond. The placement totaled $30 million with a 30-year term. The mortgage-backed bond was said to be the first from a nonbank entity in Chile since 2009.
CrediTú is described as a Chilean Fintech leader in the origination of housing loans in Latin America.
CrediTú participated in the operation as the originator of the mortgage assets and Volcom Securitizadora as the issuer and structurer of the bond.
CrediTú’s CEO, Francisco Eterovic said they are proud of the reception of the bond especially considering the uncertainty of the financial markets given the events that have taken place in our country.
“… this inaugural bond offers investors access to a favorable asset class with attractive income characteristics, considering its profitability, duration and security. At the same time, it is a great opportunity for CrediTú to expand our offerings and portfolio scope,” said Eterovic.
According to CrediTú, the mortgage-backed assets have up to a 30-year duration and primarily targets middle-class homeowners as well as those receiving housing subsidies. CrediTú claims it is the only portfolio in South America that has credit insurance which covers non-payment of outstanding mortgage debt.
CrediTú was founded in 2017 and is regulated by the Chilean Financial Market Commission (CMF).
The platform’s mission is the democratization of housing, helping middle-class families with their mortgage through the use of technology. In its first two years of operation, CrediTú has issued US$ 140 million in mortgage loans financing more than 1,500 families and reaching 1% of the Chilean housing market during the third trimester of 2019. The company is the second-largest non-banking institution in residential housing loans, behind Principal Financial Group.