Corporate Communications

VTB Capital successfully completes a securitisation of AK BARS BANK mortgage portfolio

22 December 2014

VTB Capital has successfully completed the RUB 2.5 billion securitisation deal for AK BARS BANK mortgage portfolio as part of the Vnesheconombank's programme for investing in affordable housing and mortgages in 2010-2013.

Three classes of mortgage bonds were issued ("A", "B" and "M"). The size of the "A" class tranche is RUB 1.4 billion; "B" – RUB 696.7 million; and "M" – RUB 412.9 million. The coupon rate for class "A" has been set at 9%, for class "B" at 3%. The legal final maturity of the senior tranches is 10.05.2047.

Moody's has assigned a credit rating of Baa3(sf) to the "A" and "B" classes issues.

Andrey Suchkov, Head of Securitisation at VTB Capital, said: "The successful completion of the transaction AK BARS BANK has clearly shown that securitisation can be an effective mechanism for funding mortgages, not only in periods of economic growth, but also during more challenging periods. In the current challenging economic situation, support for public development corporations, such as Vnesheconombank, is essential for the further development of the mortgage market in Russia."


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