Corporate Communications

VTB Capital successfully completes a securitisation of Bank Uralsib mortgage portfolio

22 October 2014

VTB Capital has successfully completed a RUB 8.87 billion securitisation deal for Bank Uralsib mortgage portfolio

Three tranches of mortgage bonds were issued ("A1", "A2" and "B"). The size of the senior tranche "A1" is 5 000 000 thousand roubles; "A2" - 2,536,308 thousand roubles. The coupon rate for tranche "A1" has been set at 8.75%, for tranche "A2" at 11.25%. The size of the subordinate tranche "B" is 1,329,937 thousand roubles. The legal final maturity of the senior tranches is 15.07.2047.

The Agency for Housing Mortgage Lending was the main investor in the senior tranche A1. Senior tranches accounted for 85% of the issue, due to the high quality mortgage loan portfolio of bank "Uralsib", as well as financial risks insurance.

Andrey Suchkov, Head of Securitisation at VTB Capital, said: "VTB Capital continues to actively develop business securitisation of Russian assets. This was the second mortgage securitisation transaction for bank "Uralsib"; we are pleased that this time VTB Capital was chosen as the sole arranger of the deal. The MBS issue was the first one in the Russian market, which combined the 'guaranteed placement' senior tranche - A1, which bought AHML; and a "market" tranche - A2. I am sure that VTB Capital will continue to hold a leading position in this sector of the financial market, while maintaining high trust from customers."

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