OREANDA-NEWS. October 02, 2009. MBRD, the Originator of Mortgage-Backed Securities issue, informs about placement of Residential Mortgage-Backed Securities, class A and B for an overall amount of 2,217,293,000.00 RUR, reported the press-centre of MBRD.

Offering format:
1. Class A Non-Convertible Fixed Rate Residential Mortgage-Backed Bonds issued in bearer form in the amount of 1,906,872 bonds with a nominal value of RUR 1,000 each to be placed by close subscription. State Registration Number is 4-01-69714-H dated August 18, 2009.

2. Class A Non-Convertible Fixed Rate Residential Mortgage-Backed Bonds issued in bearer form in the amount of 310,421 bonds with a nominal value of RUR 1,000 each to be placed by close subscription. State Registration Number is 4-02-69714-H dated August 18, 2009.

MBRD purchased both bond offerings.

“Residential mortgage-backed securities were placed by the Mortgage Agent of MBRD simultaneously with the assignment of Mortgage portfolio as collateral” noted Mr. Sergey Zaytsev, the Chairman of the Board, MBRD. “Certainly, such practice is widely-spread abroad but in Russia, MBRD has implemented this scheme for the first time. Thereby we have avoided surcharges on the Bank’s required reserves. This scheme offers opportunities of securitization for a wide range of banks which are in need of refinancing. I suppose this scheme to be used in most of the subsequent mortgage-backed securities offerings.”

Repayment priority of the Bonds:
The Class A Bonds shall take priority over the Class B Bonds. Redemption at par and coupon yield payment shall be made by installments on every 20th day of March, June, September and December of each year in a successive order according to the established priority.

The Class A Bonds and the Class B Bonds are collateralized by the same portfolio of Mortgage Certificates. The Mortgage Collateral comprises claims under Mortgage Loans certified by Mortgage Certificates issued in 40 regions of Russia. The Mortgage Collateral consists of 1,574 Mortgage Certificates.

For reference use:
The Issuer is entitled to prepay the Class A Bonds and the Class B Bonds (subject to redemption in full of the Class A Bonds) on the date after the aggregate principal amount outstanding of the Class A Bonds and the Class B Bonds becomes less than 30% of the initial aggregate amount of the said Bonds as of the placement date of the relevant classes of Bonds.

The Issuer of the Bonds is CJSC “Mortgage Agent of MBRD” incorporated on December 11, 2008 in the form of a closed joint-stock company in accordance with the requirements of the Russian Federal Law on Mortgage Backed Securities. The shareholders of the CJSC “Mortgage Agent of MBRD” are two Funds incorporated pursuant to the legislation of the Netherlands. LLC “TMF RUS” is the sole executive body of the Issuer.