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Comments by Andrey Suchkov, Head of Securitization at VTB Capital, for IFR

7 December 2017
VTB uses AHML guarantee scheme for RUB48.2bn Russian RMBS
VTB Group yesterday closed a RUB48.2bn Russian RMBS that makes use of the country's government-backed Agency For Housing and Mortgage Lending (AHML) issuance programme.

Under the scheme, which resembles Fannie Mae issuance, an AHML subsidiary SPV called MBS Factory LLC buys and securitises mortgages from originating banks. Just a single tranche of bonds is issued, and repayment is guaranteed by AHML.

VTB has retained the notes but will now begin to market them to third-party investors. The notes are pass-throughs with an expected life of three to four years and pay an 11.5% annual coupon. Legal final maturity is 2046.

"Mortgage lending is the fastest growing segment of Russian bank lending, and Russian banks need the additional source of funding which securitisation can provide," Andrey Suchkov, Head of securitisation at VTB Capital told IFR.

VTB Capital

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