VTB Capital has completed its fifth RUB 4.5 billion mortgage portfolio securitisation deal for Vozrozhdenie Bank.
The deal consisted of floating mortgage bonds for a total of RUB 4.1 billion. The bond stirred interest among investors, who helped place the issue at the lower end of the price range. The coupon rate for the fifth bond issue by Vozrozhdenie Bank Mortgage Agency was set at 9.25%.
Moody’s has assigned a credit rating of Ваа3 (sf) to Vozrozhdenie Bank Mortgage Agency’s fifth bond issue. Building on the high quality of the portfolio and the originator’s issuing and administration standards, as well the presence of reliable contractors, this has become one of the best-structured mortgage bonds on the market: credit support stands at 14% of the portfolio, including resecuritisation (8.8%) and a reserve fund (5.2%). The bond expiry date is 28 August 2049.
VTB Group provided the infrastructure for the transaction as an account bank, settlement agent and specialised depositary of mortgage collateral, while the Agency for Housing Mortgage Lending acted as the reserve service agent. VTB Capital organised the deal and underwrote the issuance. Sovcombank was involved in the placement as the lead co-organiser, and Promsvyazbank and Solid Financial Investment Company acted as bond co-organisers.
Andrey Suchkov, Head of Securitisation at VTB Capital, said: “VTB Capital continues to strengthen its leadership in the Russian securitisation market. This was the fifth deal arranged by VTB Capital for Vozrozhdenie Bank, which provides further proof of the high level of trust in the professionalism of our team and the efficiency of VTB Capital’s securitisation business. The issue has stirred interest in the market, and will definitely serve as a benchmark for future transactions.”
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