VTB Capital has successfully completed a RUB 4.57bn securitization deal for TranscapitalBank’s mortgage portfolio.
Moody's has assigned a credit rating of Baa3 to this tranche. The coupon rate is 8%. The placement was arranged in two tranches within the Agency for Housing Mortgage Lending’s Program for Mortgage-backed Securities Purchase sector. This is the first Russian mortgage portfolio securitization deal with lenders’ mortgage insurance in the structure. This form of credit risk insurance protects the lender against potential losses arising from the insolvency of the borrower and the subsequent realization of the mortgaged property.
Andrey Suchkov, Head of Securitization at VTB Capital, said: "VTB Capital continues an active program to develop the securitization business of Russian assets. Attracting the insurance company for the transaction is the next logical step in improving investor confidence in our market. I am sure that in the future VTB Capital will retain its leading position in this financial market segment."
Head of Press