Corporate Communications

VTB Capital successfully completes second mortgage portfolio securitization deal for AK BARS BANK

28 January 2016
VTB Capital has successfully completed the RUB 11.2 billion securitization deal for AK BARS BANK’s mortgage portfolio.

The RUB 10.3 billion "A" class mortgage bonds were placed on the Moscow Exchange at the coupon rate of 10%. The legal final maturity is 15 October 2047. The issued bonds fully comply with the requirements for inclusion in the Lombard list of the Bank of Russia.

Moody's has assigned a credit rating of Baa3 (sf) to the senior tranche. VTB Group companies provided the infrastructure services for the transaction, including the bank accounts, the calculation agent and the specialized depositary of mortgage collateral. Agency for Housing Mortgage Lending acted as backup servicer in this transaction.

Andrey Suchkov, Head of Securitization at VTB Capital, said: "Under the challenging situation facing the Russian market, the deal with AK BARS Bank received a rating above the sovereign level, which was a confirmation of the high quality of Russian mortgage bonds. This transaction continues the AK BARS Bank policy, aimed at diversifying the sources of funding and is a logical continuation of the Bank’s debut securitization of its mortgage portfolio done in 2014 with the VTB Capital support as a part of the Vnesheconombank’s programme".
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