OREANDA-NEWS. Agency for Housing Mortgage Lending (AHML) ensured support to another issue of mortgage-backed bonds of Open joint-stock company "Khanty-Mansiysk Bank" (from 5 November, 2014 - PJSC (Public joint-stock company) "KHMB Otkrytiye") having acted as a reserve service agent. AHML Group has also strengthened the deal structure participating as a financial risks insurer.

Within the framework of the deal carried out by CJSC "Mortgage agent KHMB-2" as an issuer, three tranches of mortgage-backed bonds (class A, B and C) secured by portfolio of mortgage loans serviced by "KHMB Otkrytiye" were issued. The total size of the placed issues amounts to 7.3 billion roubles, including 4.39 billion RUB in A class bonds, 2.19 billion RUB in bonds of class B and 0.73 billion RUB in C class bonds.

The coupon rate for A class bonds was set as 9% per annum. The coupon rate for B class bonds was set as 3% per annum. The Rating agency Moody's Investors Service has rated the A and B class bonds as Baa3. The B class bonds with floating coupon were not rated.

The full-expiry date for all classes of bonds is July 1st, 2047.

Vneshekonombank acted as the buyer of A and B class bonds. VEB Capital was the organizer of the mortgage-backed bonds issue deal, the AHML Group acted as the financial risks insurer, and also served as a servicing agent and as a settlement agent. Attorneys at law "Yegorov, Puginsky, Afanasyev and Partners" provided the legal service of the deal.

"For the time being originator banks are trying to ensure additional guarantee for their mortgage-backed bonds by AHML back-up service. And, this decision, as we see it, is very well justified, since AHML's participation in a deal as a reserve service agent influences the rating of the senior tranch bonds. Such structure of a deal enables to reduce special purpose reserves and to improve the issue subordination increasing the financial benefit in structuring the deal", commented Iraida Shtyrova, director of the Department of Development and Infrastructure of Master Servicing, AHML.

"Together with our partners we managed to prepare and organize the second unique off-balance securitization deal for a part of the "KHMB Otkrytiye" mortgage portfolio. For that, we have invited the already strong team of VEB Capital, AHML Group and YPAM legal adviser whose service we consider impeccable in terms of quality and reliability. The creditor's financial risk insurance instrument granted by IC AHML, the default loan replacement mechanism throughout the deal support (up to 5% of the flotation value) recommended by the organizer and implemented in Russian practice for the first time, reliable settlement and reserve service agent - AHML, as well as high credit quality of the bank's mortgage portfolio - all these components of the deal structure have had a positive impact on the issue subordination: 90% of the issue was allocated to the senior tranches whereas the level of loan support was at the minimal value of 10%", Vladimir Vishnyakov, Vice-president of "KHMB Otkrytiye", commented.

Since the beginning of 2014 AHML has participated as a back-up servicer in 7 securitization transactions totalling 28.40 billion roubles.