Vozrozhdenie Bank successfully completed the 4th securitization deal

4 June 2015

Vozrozhdenie Bank successfully completed the 4th mortgage securitization deal and placed mortgage-backed bonds under Agency for Housing Mortgage Lending (AHML) program on mortgage-backed bonds purchase.

Two tranches (“A” and “B”) in the total amount of RUB3.45 billion were sold in the course of the deal. Tranche “A” of RUB3 billion was placed via public offering on MICEX while Vozrozhdenie Bank acquired tranche “B” bonds for the amount of RUB 0.45 billion via closed subscription. Moody’s Investors Service assigned tranche “A” bonds with the rating Bаа3. This tranche was placed with a coupon rate of 9%. Both tranches final redemption date was set as January 27, 2048. The securities were issued by SPV Closed Joint Stock Company “Mortgage agent Vozrozhdenie 4”.

Good quality of Vozrozhdenie Bank mortgages afforded to maintain subordination of tranches in the deal.

“Currently this mortgage funding mechanism has become absolutely ordinary for us. Now it’s hard to imagine that just a few years ago when we were preparing for the first deal it seemed to be so complicated. I want to record my thanks to all who participated in the project, and first of all VTB Capital. Securitisation is an appropriate and well-operating instrument that allows working on the mortgage market even in the tough economic environment in an effective and predictable manner. For us the programme is a basis for development of mortgage lending. We still consider mortgages as a strategic product for securing loan portfolio quality and building long-term relations with reliable, attractive clients and large developers”, commented Evgeniy Dmitriev, Head of Retail Business Department.

The new Board of Directors held its first meeting
Heirs of Dmitry Orlov received the title on voting shares of Vozrozhdenie Bank