OREANDA-NEWS. The Agency for Housing Mortgage Lending (AHML) acted as guarantor for issues of mortgage-backed bonds in the securitisation of mortgage assets of Sberbank of Russia (JSC) within the framework of the Programme of Investment of Bank for Development and Foreign Economic Affairs (Vnesheconombank, VEB) in Affordable Housing Construction and Mortgage Lending for 2010-2013.

As a part of the transaction by the Issuer LLC Mortgage Agent SB-2014, two senior tranches (A and B Class) and one junior tranche (B Class) of housing bonds were issued. The amount of placed issues totalled 11.1 billion roubles, including A Class bonds - 6.7 billion roubles., B Class bonds - 3.3 billion roubles, and C Class bonds - 1.1 billion roubles. The Agency has provided guarantees for two senior tranches.

The coupon rate for A Class bonds is set at 9% per annum. The coupon rate for B Class bonds is set at 3% per annum.

The Bonds are to be repaid in full on December 28, 2046.

The guarantee implies a joint and several responsibility of AHML for the bond issuers' liabilities to pay the nominal value of the bonds and accrued interest (coupon) income derived from them.

"In the context of restrictions on fund-raising by individual Russian banks, established by foreign regulators, the guarantee of AHML is an effective alternative measure for the confirmation of high credit quality of the instrument. Successful implementation of Sberbank's transaction demonstrates that the Agency's involvement in securitisation transactions allows to ensure both the performance of the bank's obligations as a member of the VEB Programme and the implementation of other tasks related to resource mobilization through securitisation", says Executive Director, Head of AHML Capital Division Natalia Koltsova.

Today, the scope of guarantees issued by the Agency on mortgage-backed bonds is over 34 billion roubles, including the Sberbank's transaction.