Financial services firms UBS, Citigroup and Natixis are looking to undertake a $750 million offering backed by commercial mortgages, Bloomberg reports. Several banks had been in discussions with the firms to collate property loans to the tune of $1.5 billion.
Citigroup will handle the bond sale and is not providing loans. On of the largest contribution came in October from UBS providing $176 million in debt on the Poughkeepsie Galleria, a shopping center in New York towards the pooled transaction. Investors have shown greater interest in commercial-mortgage backed bonds over Treasuries.
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Citigroup New York Bloomberg UBS Natixis