JSC VTB Capital acted as the official organizer and underwriter of mortgage bonds for the Bank Vozrozhdenie. The total amount of issuance comprised RUR 4.071 bn and consisted of two tranches – Class A (RUR 2.931 bn, 72% of total volume) and Class B (RUR 1.14 bn, 28% of total volume). Mortgage Agent Vozrozhdenie 1 has issued the securities.
The Class A mortgage backed securities were publicly placed on MICEX among institutional investors on December 27th, with an annual coupon rate of 8.95%. In addition to the organization and placement of mortgage bonds VTB Group has provided all basic infrastructure for the deal. VTB Bank acted as a calculation agent, paying agent and issuer account bank; VTB Specialized Depository acted as a special depositary of mortgage collateral; and VTB24 acted as a back-up servicer. The high reliability of the mortgage backed securities was confirmed by Moody’s, which has assigned definitive long-term credit rating Baa2 to the Class A bonds.
Andrey Suchkov, Head of Securitization at VTB Capital, pointed out that the placement of Class A mortgage backed securities of the Bank Vozrozhdenie is the first true sale domestic mortgage securitization of a private Russian bank publicly placed on MICEX and rated by an international rating agency. He hailed this as the beginning of "a large pipeline of deals in the newly-developed domestic MBS market".
Head of Press