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Russian Federation : CREDIT BANK OF MOSCOW concludes RUB4.69bn securitisation agreement

June 21, 2014



VTB Capital has induced a RUB4.69bn securitisation agreement for Credit Bank of Moscow s mortgage portfolio.

The securities were established among Russian investors outside the extent of the government s mortgage assistance programmes. The Agency for Housing Mortgage Lending (AHML) was the backup service agent in the agreement.

Moody's accredited a credit rating of Baa3 (sf) to the RUB3.7bn senior tranche. Pension fund managers, along with investment and insurance companies, have asserted an interest in the placement.

Lenders submitted applications with coupon rates ranging from 10.45% to 11.00% per annum, during the book formation. The marketing range has been corrected from the initial 10.25-11.00% to the final 10.50-10.65%.

The issuer determined that the interest rate for the first coupon would be 10.65% per annum, as per the marketing results. Bids for subsequent coupons will be equal to the first coupon.

Andrey Suchkov, head of securitisation at VTB Capital, commented "Growing investor interest in high credit quality mortgage bonds made it possible to place the bonds about 40 basis points unsecured inside curve originating bank."


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Source: TendersInfo (India)


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