OREANDA-NEWS. As a part of activities to develop securitization of mortgage assets in Russia, the Agency for Housing Mortgage Lending (AHML) conducted another successful transaction with Fora-Bank, JSCB (JSC) where it provided a "double protection" of bondholders, guaranteeing the continuity of cash flow to investors.

To implement the transaction, the issuer, Mortgage Agent FORA 2014, CJSC placed two classes of mortgage-backed bonds ("A" and "B"), totalling 1.48 milliard roubles. A Class bonds total to 1.18 billion roubles, and B Class bonds total to 296.642 million roubles.

The coupon rate for A class bonds was set at 9.5% per annum.

The final maturity date for all classes of bonds is October 15, 2047.

The transaction was organized by VTB Capital. In the current transaction AHML was the guarantor, back-up servicer and the calculation agent.

As the guarantor in the transaction, AHML guarantees the required payments in the event the mortgage agent fails to fulfil its obligations.

Under the back-up support contract, AHML provided the mortgage agent with "cold" service. The acceptance term of the portfolio, upon the expiration of which AHML begins to provide a full range of primary mortgage services (including acceptance of credit histories, the transfer of borrowers' funds to accounts, litigations, etc.) is 90 calendar days.

"As the back-up servicer, we take part in the second transaction on the securitization of a part of the mortgage portfolio of Fora-Bank, JSCB. Just like in the past debut transaction of the bank, the services of AHML provide "double protection" to holders of bonds issued. As a part of the provided backup service, the Agency performs a significant amount of work to be ready, at some point within the specified period of time (60 or 90 days), to adopt the portfolio of mortgages on the primary support and to provide a high quality and full range of services required from the primary servicer. In the debut transaction of Fora-Bank, JSCB, concluded in March 2013, our service "Backup service" only began its formation in the market of infrastructure services. We are pleased that, having shown interest in our backup service, Fora-Bank, JSCB has become our reliable partner, and we have rightly earned the trust, and we conclude the new transaction together again," - commented Iraida Shtyrova, the Director of the Department of Development and Infrastructure of Master Servicing, AHML.

"We appreciate the results of the transaction on the securitization of mortgage portfolio and thank the project participants and partners involved, in particular, "VTB Capital" and AHML. The availability of a formed quality loan portfolio, reliable partners, effective interaction of the participants in the transaction were the factors that contributed to the timely closing of the transaction and the achieved amount of the senior tranche of 80% of the issue. All planned results have been achieved. We can say with certainty that the current reliable partnership structure can be used in our next transactions,"- said Dmitry Orlov, Deputy Chairman of the Management Board, Fora-Bank, JSCB (JSC).

Since the beginning of 2014 AHML has participated as a back-up servicer in 11 securitization transactions totalling 44 billion roubles, including the transaction of Fora-Bank, JSCB (JSC).