Corporate Communications

VTB Capital completes third mortgage portfolio securitisation deal for Housing Finance Bank

30 June 2015

VTB Capital has successfully completed the third RUB 3.6 billion securitisation deal for Housing Finance Bank’s mortgage portfolio.

Two tranches of mortgage backed securities were issued by each of two created mortgage agents (classes "A" and "B"). The size of the "A" class is RUB 3.11 billion and the size of "B" is RUB 0.46 billion. The coupon rates for senior classes have been set at 9% and 9.25%. The legal final maturity of all tranches for the first mortgage agent is 25.04.2045, while it is 03.10.2038 for the second mortgage agent.

Class "A" bonds were placed within the Agency for Housing Mortgage Lending (AHML) programme for buying mortgage backed securities, while class "B" bonds were retained by Housing Finance Bank. AHML acted as guarantor for the class “A” bonds, as well as the settlement and reserve service agent and the insurer for financial risks.

Andrey Suchkov, Head of Securitisation at VTB Capital, said: "VTB Capital is the most active participant in the Russian securitisation market. Senior tranches were placed on MICEX with AHML surety, allowing the originator bank to attract funding in the amount of RUB 3.1 billion for the further development of the mortgage business. This transaction was our third joint project with Housing Finance Bank, which underlines VTB Capital’s reputation for expertise in this market segment. I am confident that our work will continue to generate interest in Russian mortgage securities".

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