Bank Vozrozhdenie successfully completed the 3rd mortgage securitization deal

26 March 2014

Bank Vozrozhdenie successfully completed the 3rd 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 Bank Vozrozhdenie 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 Bаа2 (sf). This tranche was placed with a coupon rate of 9%. Both tranches final redemption date was fixed as October 26, 2046. The securities were issued by SPV Closed Joint Stock Company “Mortgage agent Vozrozhdenie 3” (

Low level of LTV, completed formation of special purpose reserve fund, possibility of AHML’s back-up support of deal handling as well as good credit quality of Bank Vozrozhdenie mortgages and low level of overdue indebtedness within the securitized portfolio reasoned better subordination of tranches in the deal. Senior class “A” bonds represented 87% of the total deal size.

“We are pleased with the results of another deal on mortgages securitization finalized by the bank. It’s quite notable that subordination of tranches was better than in the previous deal reflecting good quality of our mortgages and high level of our borrowers’ creditworthiness. As at the moment securitization is the optimal way of funding this kind of loans and we plan to continue development of mortgage business using worked out process of their securitization”, — commented Eugene Dmitriev, Head of Bank Vozrozhdenie Retail Business Department.

The major part of Class A bonds issue was acquired by Open Joint Stock Company “Agency for Housing Mortgage Lending”.

Closed Joint Stock Company VTB Capital was the arranger and technical underwriter of the deal, Linklaters LLP provided legal support and Open Joint Stock Company “Agency for Housing Mortgage Lending” acted as a back-up servicer of the deal.

The Bank of Russia registered the issues of Class A and Class B non-convertible interest-bearing documentary mortgage-backed bonds payable to the bearer with mandatory centralized keeping of CJSC “MAV3” with the numbers 4-02-81762-H and 4-01-81762-H on March 18 and February 27, 2014 respectively.

Bank Vozrozhdenie earned RUB1.5 billion of net income in 2013
Bank Vozrozhdenie held traditional annual Analyst Day