TRANSKAPITALBANK successfully closed another RMBS transaction
Mortgage agent TKB-3 placed residential mortgage-backed fixed rate notes in the amount of RUB4,1bln on the Moscow Exchange with the coupon rate of 9,10% p.a.
This bond issuance was made to diversify the Bank’s funding structure as well as to attract additional funds for the further development of the mortgage lending programs in TRANSKAPITALBANK (TKB).
The transaction structure envisages some tools, which are different from the ones TKB used in its previous RMBS deals. The junior tranche is substituted with TKB’s own credit enhancement (sub-loan and reserve funds) amounting to 19,6% from the securitized mortgage loans pool and facilitated by means of the long-term subordinated loans extended by the Bank to the bonds Issuer. The transaction was welcomed by the market and investors due to the combination of high credit rating, comfortable risk profile and the adequate yield level. Some large institutional investors were interested in this bond issuance, including asset managers, private pension funds, financial institutions and others.
TKB acted as the underwriter and the MLA. PJSC Sovcombank and REGION Group also joined as the mandated lead arrangers for this transaction.
Citibank N.A. London Branch acted as the Calculation Agent and AO Citibank (Moscow) acted as the Issuer Account Bank.
DeltaCredit Bank is the Back-Up Servicer and VTB Specialized Depository is the Special Depository.
Baker&McKenzie acted as the Legal Counsel.
Moody’s Investors Services assigned Baa3(sf) credit rating to this residential mortgage-backed fixed rate notes.