RBI Lead-Manages 1st DPR Transaction in Russia since 2007
OREANDA-NEWS. June 25, 2012. A USD 125 million securitisation of Diversified Payment Rights (DPR) originated by Raiffeisenbank, Moscow, was closed successfully. The transaction was lead managed by German WestLB AG and Raiffeisen Bank International AG (RBI), reported the press-centre of Raiffeisen Bank.
The transaction uses present and future incoming cash flows generated by Raiffeisenbank through its international payment order processing business as financing collateral . As such, this transaction contributes to the diversification of funding sources and enables longer-term financing at favourable rates.
The US dollar-denominated notes are issued by Roof Russia DPR Finance Company S.A., a company incorporated under Luxembourg law, and were rated by Fitch Ratings Ltd. They have tenors of five and seven years and carry floating interest rates.
"This deal marks the first Russian DPR transaction since 2007. Raiffeisenbank’s strong position in payment order processing and strong structural features supported the successful closing, underpinning RBI’s strong structuring and execution skills also in volatile markets. WestLB’s pronounced expertise in that particular business significantly contributed to the overall and timely success of this transaction. In a capital and liquidity constrained environment, asset based finance techniques will add important funding diversification to financial institutions as well as corporates. We expect this to be a growing market," said Klemens Breuer, RBI Board Member responsible for Capital Markets and Investment Banking.
Sergei Monin, Raiffeisenbank’s Chairman of the Managing Board added: "Under its DPR programme, Raiffeisenbank intends to raise further secured funding from international investors up to USD 800 million over time".
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