OREANDA-NEWS. USD 179 million Residential Mortgage Backed Securitisation (RMBS) successfully closed Underlines Raiffeisen’s strong origination position and securitisation capabilities in Russia.

A securitisation of mortgage loans in the amount of USD 179 million, originated by Russian commercial bank Moskommertsbank LLC (MKB), has been closed successfully. The transaction has been lead managed by HSBC Bank PLC and Raiffeisen Zentralbank Osterreich AG (RZB) with ZAO Raiffeisenbank Austria, Moscow, being Joint Arranger. In the course of the transaction, a special purpose vehicle (SPV) will issue three classes of notes to refinance the warehousing transaction, used to fund the purchase of a portfolio of mortgage loans originated by MKB. The notes issued by Moscow Stars B.V. - an SPV incorporated under Dutch law – have been rated by Moody’s Investor Service Ltd and Fitch Ratings Ltd.

“This deal marks one of the largest RMBS transactions in Russia to date. The good quality of the underlying portfolio, strong structural features and MKB's strict underwriting criteria supported the successful closing”, said Patrick Butler, Board Member of RZB, responsible for Treasury and Investment Banking. “This is a remarkable success in a tough market.”

The securitised mortgage loans are US dollar-denominated and carry fixed interest rates. These loans are granted to prime retail borrowers and are secured by mortgages on properties in Moscow and Moscow region.

MKB is one of the most successful residential mortgage lenders, ranking top 3 in terms of both disbursement and mortgage portfolio size in 2006.

Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia via its branches and representative offices.

Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates the largest banking network in CEE. 18 markets are covered by subsidiary banks, finance leasing companies and two representative offices. Approximately 12.5 million customers are attended to through more than 2,900 business outlets.