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Saturday, February 17, 2018

Bank Vozrozhdenie completes mortgage securitization deal

Bank Vozrozhdenie announced the completion on Wednesday of its third mortgage securitization deal and the placement of mortgage backed bonds under the Agency for Housing Mortgage Lending's program on mortgage-backed bonds purchase.

The bank sold two tranches totaling $96.8 million during the deal.

"We are pleased with the results of another deal on mortgages securitization finalized by the bank," Eugene Dmitriev, the head of Bank Vozrozhdenie's retail business department, said.

Tranche A was placed on Micex and was worth $84.5 million. The tranche had a coupon rate of nine percent and received a rating of Baa2 from Moody's Investors Service.

Bank Vozrozhdenie acquired tranche B bonds in the amount of $12.6 million via closed subscription. SPV Closed Joint Stock Company Mortgage Agent Vozrozhdenie 3 issued the securities.

The final redemption date of both tranches was fixed as October 26, 2046.

"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," Dmitriev said. "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."