OREANDA-NEWS. 400 million US-dollar auto loan securitisation successfully placed;best ever rating and capital structure for a Russian Auto ABS transaction; extremely well-priced: 95 basis points above LIBOR for the senior tranche; underlines Raiffeisen's strong origination position in Russia, reported the press-centre of  Raiffeisenbank.


Today, a securitization of auto loans in the amount of 400 million US-dollars, originated by ZAO Raiffeisenbank Austria, the Russian subsidiary of Raiffeisen International, has successfully been placed with international investors. Under the transaction which has been arranged by JPMorgan and Raiffeisen Zentralbank Osterreich, Raiffeisenbank has sold a portfolio of auto loans to a special-purpose entity named ROOF Russia S.A.. ROOF Russia will fund the purchase amongst others from the proceeds of a series of asset-backed secured floating rate notes. These notes, which represent different risk classes, have been rated by Moody's Investor Service and Fitch Ratings.


The most senior tranche reflects in total 89,3 per cent of the portfolio and has received A3/A-minus Ratings by Moody’s and Fitch respectively. So far, Russian asset backed securities (ABS) transactions have only achieved ratings in the Single-A area. Its overall rating structure places the transaction amongst the highest ever publicly rated securitisation transactions undertaken in Russia and is reflective of Raiffeisenbank's robust underwriting standards and, generally, of its strong market position in the increasingly competitive Russian consumer finance market. The high quality of the underlying assets is also reflected in the very competitive spread of the Class A-Notes of 95 basis points above LIBOR (London Interbank Offered Rate).


"This deal marks one of the largest ABS transactions in Russia to date. The asset quality, rating and pricing structure clearly give this transaction benchmark status", said Patrick Butler, Member of the Managing Board of RZB responsible for Treasury and Investment Banking. "95 basis points over LIBOR represent the tightest pricing so far achieved in this sector - reflecting growing investor demand".

The legal final maturity of the transaction is 10 years. The securitised auto loans are US dollar-denominated and carry fixed rates of interest. All auto loans are amortising and are granted to middle and high-income borrowers for the purchase of new non-Russian vehicles. The transaction marks Raiffeisen's successful entry into the international asset backed securities market as a source of competitive funding and will support the further expansion of Raiffeisenbank's activities in the Russian market. "We actively manage our risk exposure to retail clients in the region. Our ability to place certain portfolio risks to specialised investors participating in the transaction allows us to further improve the effectiveness of our lending strategy ", said Martin Groll, CFO of Raiffeisen International.


Sergei Monin, Member of the Managing Board, Head of Treasury of ZAO Raiffeisenbank Austria commented on the results of the deal and said: “The capital structure and the narrow price range fully reflect Raiffeisenbank's high underwriting standards. We are very satisfied with the results of this first deal, as the created business model points the vector of our bank's further development”.

Raiffeisen International Bank-Holding AG, part of RZB Group, is the largest foreign banking group in Russia according to Interfax's Centre for Economic Analysis (Interfax-CEA). Raiffeisen International, represented in Russia by Raiffeisenbank Austria and Impexbank, is the seventh-largest bank in Russia in terms of total assets, Interfax-CEA reported, citing data from 1 January 2007, based on Russian Accounting Standards. Total assets of both banks amounted to over 287,5 billion rubles (7,8 billion euros). Together, Raiffeisenbank and Impexbank are ranked 3rd in Russia in terms of consumer deposit volumes (79,5 billion rubles, approximately 2,2 billion euros) and 4th in consumer lending (48,6 billion rubles, approximately 1,3 billion euros), Interfax-CEA reported. The most significant factor in the business development of Raiffeisen International in Russia is the constant expansion of the sales network, which is spread across the country, providing access to more than 140 million people.


Raiffeisenbank Austria is a universal bank, focussing in equal measure on commercial, retail and investment banking activities. It started operations in 1996 and is ranked 10th in Russia in terms of assets, based on 2006 results (Interfax-CEA). In February 2007, top business magazine Global Finance named the Raiffeisen Group Russia's Best Overseas Bank. Established in 1993, Impexbank is also a universal bank, and is ranked among the top 30 Russian banks in terms of assets and equity and among the top 10 retail banks. The bank's customers are serviced through 197 business outlets, and about 400 points of consumer lending.