VTB Capital has successfully completed a RUB 8.2bn securitisation deal for Absolut Bank’s mortgage portfolio. This is the second transaction organised by VTB Capital for Absolut Bank this year. The RUB 6.9bn senior tranche placing was organised under market conditions outside of government support programmes. Moody's has assigned a credit rating of Baa3 to the second tranche. The coupon rate is 8.9%
The oversubscription of the placement indicates an absolute interest in the securities from private investors.
Andrey Suchkov, Head of Securitisation at VTB Capital, said: "This is the second mortgage loan portfolio securitisation that Absolut Bank has implemented this year. Compared with the first transaction, cost of borrowing has declined and we have seen new names among private investors. This certainly indicates a positive dynamic in the Russian mortgage-backed securities market, which for some of the largest mortgage lenders have today become an important source of funding their active operations. Further development of the national market, improving its liquidity and expansion of investors remains for VTB Capital one of the strategic priorities and will help to increase the availability of mortgage loans to Russian citizens”.
Head of Press