VTB Capital has successfully completed a RUB 6bn Series 19 AHML (The Agency for Housing Mortgage Lending) bonds placement with repayment in 2024 with a 4-year offer. VTB Capital arranged the bonds placement with was supported by co-organiser Troika Dialog.
The securities were placed with a coupon rate of 7.70% per annum (the marketing spread was initially set at 7.80 – 8.10% per annum). Demand for the bonds exceeded supply two-fold, reaching RUB 16.5bn. 44 bids have been made by investors thus far. The major buyers are banks (42%) and management companies (36%).
The Russian Government established the Agency for Housing Mortgage Lending (AHML) with the aim of creating conditions in which all Russian citizens have the equal opportunity to access a mortgage. The main objective for the AHML is to provide liquidity to commercial banks offering long-term housing loans to the Russian population. This will be facilitated through the purchase of claims on such loans using the funds attracted by posting securities on the Russian stock exchange.
Alexey Konochkin, Deputy Head of DCM at VTB Capital, said: “This issue is the second rouble bond placement organised by VTB Capital for AHML, having previously completed a RUB 7bn Series 18 bond placement for them. We successfully managed the implementation of these transactions and were able to attract broad investor demand. This success of these placements has strengthened the relationship between AHML and VTB Capital”.
Head of Press