OREANDA-NEWS. January 21, 2015. Sberbank CIB acted as the organiser of a deal under which the Agency For Housing Mortgage Lending (AHML) supported a new issue of mortgage-secured off balance sheet bonds of Open Joint-stock Company Investment Commercial Bank Tatfondbank.

During the deal, the originator – JSC AIKB Tatfondbank – placed three tranches (‘A’ (senior), ‘B’ (mezzanine) and ‘V’ (junior)) of mortgage bonds worth 2,656,445 thousand roubles. The size of the tranches is as follows: ‘A’ – 2,382,831,000 roubles, ‘B’ – 132,822,000 roubles, ‘V’ – 140,792,000 roubles. The coupon rate for the class ‘A’ bonds was set at 11%.

JSC AHML acted as the guarantor, settlement agent and back-up servicer, having provided ‘cold’ service2. Financial risks were insured by OJSC AHML Insurance.

“In the current market situation originator banks are trying to further reduce the risks of mortgage bonds by enlisting reliable infrastructure companies. AHML Group is one of the few participants of the securitisation market that provides originators with the complete range of infrastructure services needed for working with mortgage portfolios. In addition, we insure investors’ financial risks via AHML Insurance. The reliability and investment attractiveness of mortgage-backed securities increases when originators use AHML Group’s services. The deal was successfully completed thanks to well-coordinated collaboration between the teams of Tatfondbank, AHML Group and Sberbank CIB,” commented Iriada Shtyrova, Director of the Department for Developing Master Service Facilities and Infrastructure at AHML.

“In the off balance sheet deal to securitise the mortgage loan portfolio we were able to achieve our planned results: 89% of the issue was allocated to the senior tranche. This was possible thanks to the good credit quality of our portfolio of mortgage loans and also the fact that we properly selected our professional partners,” said representative of JSC Tatfondbank, Sergey Meshchanov.

“The deal employed effective structuring mechanisms, which allowed for the significant reduction of the size of the junior tranche and the placement of senior and mezzanine tranches. Given the challenging market environment, the completion of this deal is a definite success for Tatfondbank. This issue is a definite success,” commented Tengiz Kaladze, Director, Head of Securitisation, Investment Banking Department, Sberbank CIB.