VTB is to arrange securitization of Russian mortgage loans worth around $150 million in the spring of 2008, given favourable market conditions. So said Andrei Suchkov, VTB senior vice president, in an unofficial statement. The first issue is scheduled for the spring of 2008 as part of a program approved by VTB, UNICREDIT and DEUTSCHE BANK at the beginning of this August. Despite the current liquidity squeeze, the program was not frozen. Earlier reports said the volume of a two-year refinancing and securitization program for mortgage loans is around $2.0 billion. It is geared towards mid-sized, or primarily regional Russian banks with developed mortgage business. The program calls for creating a specialised company. At the initial stage, a member bank is to transfer its operating mortgage loans to the books of its unit in the company, thus accumulating the pool of credits. At the second stage, after the accumulated pool of credits is considered to be sufficient for securitization, mortgage bonds will be issued on the international market. At the initial stage, a consortium of VTB, UNICREDIT and DEUTSCHE BANK will provide up to $200m to every member bank involved in the program to allow banks to accumulate a portfolio of not less than $100m.
Source: BANKIR.RU, October 4, 2007
