5 April 2013
Bank Vozrozhdenie finalised the second securitization of mortgages. The issue totaled Rub 4 billion. Class A bonds amounting to Rub 2.96 billion were placed via public offering on MICEX. Moody’s Investors Service rating agency assigned it Baa3 long term credit rating. Class B bonds in the amount of Rub 1.04 billion were acquired by Bank Vozrozhdenie via private offering. The securities were issued by SPV Closed Joint Stock Company “Mortgage agent Vozrozhdenie 2” (CJSC “MAV 2”) and placed at the nominal value of Rub 1,000.
“We are pleased that it is the second issue of the bank’s mortgage-backed bonds that received Moody’s investment grade rating proving high quality of our loan book. Securitization turned to be an effective instrument of long-term funding while the market opportunities are quite limited in this regard”, — Evgeniy Dmitriev, Member of the Management Board, commented on the deal. “Mortgages remain our core segment within retail business so we are going to invest the raised funds into the further development of mortgage programmes”, — Mr. Dmitriev added.
The most part of Class A bonds issue was acquired by Open Joint Stock Company “Agency for Housing Mortgage Lending”.
Both Class A and Class B bonds shall be fully repaid by August 25, 2045. Сlass A bonds were placed among the unlimited range of investors with a coupon rate of 8.95%. Closed Joint Stock Company Bank VTB24 (Baa1/P-2) is a back-up servicer of the deal.
The Federal Financial Market Service registered the issues of Class A and Class B non-convertible certificated interest interest-bearing bearer bonds with mandatory centralized custody CJSC “MAV 2” under the numbers 4-01-79354-Н and 4-02-79354-Н respectively on February 21, 2013.