Scotiabank's Mexico Unit To Issue Up To MXN2.5 Billion In Mtge<@SM>Bonds

MEXICO CITY -(Dow Jones)- The Mexican arm of Canada's Bank of Nova Scotia (BNS) on Tuesday filed to sell up to 2.5 billion pesos ( $233.3 million) inmortgage-backed bonds later this month.

In a filing with the Mexican Stock Exchange, Grupo Financiero Scotiabank saidthe issuance is part of a residential mortgage-backed securities program forMXN10 billion pesos.

Since late 2003, federal housing fund Infonavit, home finance companies andbanks have sold more than MXN63 billion of mortgage-backed securities to fundtheir lending operations, pay down credit lines, and trim their exposure to thecountry's growing housing market.

Banks are relative newcomers to the mortgage bond market, with HSBC Mexico, Banorte (GFNORTE.MX), and BBVA Bancomer having sold about MXN10.59 billion since December 2006.

Mortgages accounted for about 35% of Grupo Financiero Scotiabank's performingloan portfolio of MXN89 billion at the end of December.

By Ken Parks, Dow Jones Newswires, 52-55-5080-3453, ken.parks@dowjones.com

(END) Dow Jones Newswires 03-04-08 1810ET Copyright (c) 2008 Dow Jones & Company, Inc.