TRANSKAPITALBANK (TKB) successfully arranged financing of electric power storages, manufactured by TOO “Kainar-AKB” from Kazakhstan into Russia.
The financing was granted in Russian Roubles by “KazakhExport” Export Insurance Company JSC under the letter of credit, issued by TKB and confirmed by Sberbank Kazakhstan.
Cooperation with KazakhExport enables TKB to provide its customers entering into cross-border trade transactions with their Kazakh counterparties with competitive terms for import LC financing within the existing national export facilitation programmes promoted by the above mentioned ECA.
KazakhExport is the only specialized insurance company which is the Republic of Kazakhstan development institution carrying out the functions of an export-credit agency. The functions of KazakhExport were stipulated in YY 2010-2014 State Program for Accelerated Industrial-innovative Development of Kazakhstan so that to establish adequate financial mechanisms to support the export of Kazakhstan manufacturing sector products to foreign markets.
KazakhExport provides export manufacturing sector enterprises and second-tier banks with insurance protection against the risk of non-payment in their foreign trade operations, and ensures the safety of export transactions.
TRANSKAPITALBANK entered the list of 50 major financial companies in Russia and the Bank is also ranked 363rd among RosBusinessConsulting’s (RBC) TOP500 Russian companies league table.
RBC ranked financial companies by their income / revenues volume. Banks were rated in accordance with the size of their fee and interest income including revenues from nonbanking activities. The cumulative metric for TKB calculated by RBC amounted to RUB28bln.
In terms of the number of participants – trading (53 companies), financial (51 companies) and oil & gas (49 companies) sectors leaded the TOP500 companies ranking this year.
Russian rating agency ACRA assigned expected rating to the senior tranche of collateralized bonds to be issued by the SPV company - SFE TKB SME 1 LLC (the Issuer).
Senior tranche, which is going to be issued in this dynamic loan portfolio securitization transaction, achieved eAAA(ru.sf) by ACRA due to the credit support from the subordinated (junior) tranche and the satisfactory credit quality of the securitized portfolio.
The Issuer will issue ruble denominated fixed rate notes secured by the portfolio of loans granted by TRANSKAPITALBANK (TKB, the Bank) to small- and medium-sized enterprises. The expected volume of the senior tranche of the notes is RUB 5,748 million.
The structure of the deal propose that new loans may be included into the securitized portfolio in replacement of repaid loans within two years after the issue of the notes, subject to certain terms and conditions (so this transaction is a dynamic asset backed securitization). Loan receivables acquired by the Issuer will form part of the collateral for the notes. The main source of payments on the rated note will be repayments from the underlying borrowers.
Among significant factors determined the securitized portfolio ACRA mentioned long weighted average life of borrowers (11.5 years) and positive credit history for most borrowers: no loans in the securitized portfolio have been in arrears for more than 30 days since their origination, 97% of loans have never been in arrears.
This transaction is going to be the Bank’s first structured finance transaction that received an expected credit rating from ACRA and it will be the first issue of collateralized notes securitized by a portfolio of loans granted by the Bank to SMEs.
The Group’s assets stand at RUB 247bln, so there have been no significant changes in comparison with the beginning of 2018.
Total equity exceeds RUB 15,9bln (influence of the new provision for Expected Credit Losses resulting from the adoption by the Group of IFRS 9 comprised RUB 5,1bln) over RUB 20,1bln as of 31 December 2017.
Net interest margin increased for 6% up to RUB 3,4bln. Net fee and commission income reached RUB 810mln. Customer accounts increased up to RUB 146,6bln.
Loans and advances to customers is in excess of RUB 139,5 bln less provisions. The main part of the credit portfolio represents loans to corporate clients in the amount of RUB 89,3bln. The volume of the loans to individuals reached more than RUB 50,2bln and composed mostly of mortgages.
TKB Bank granted a bilateral trade-related loan to Khan Bank, Mongolia which is backed by stand-by letter of credit issued by the Asian Development Bank (ADB) within ADB’s Trade Finance Program (TFP). This is the first TF transaction TKB entered with ADB under their TFP program and TKB welcomes cooperation with the well-recognized reputable multirateral financial institution. The respective Confirming Bank Agreement (CBA) between ADB and TKB was executed on 09th of November, 2017. TKB is the first Russian bank which realized such transaction within TFP of ADB.
Via the TFP ADB provides support to the international trade development in Asia Pacific, South Caucasus and Central Asia. ADB’s TFP works with more than 240 financial institutions from different countries. The volume of trade transactions supported by the ADB’s TFP reached more than US$30bln for the period of 2009 – 2017. Joining the group of ADB’s TFP Confirming Banks will help TKB Bank to expand cooperation with financial institutions across ADB’s countries of operations, including the CIS and EEU (Eurasian Economic Union) regions, to which TKB gives high priority.