CREDIT BANK OF MOSCOW successfully closed debut mortgage securitization
"Mortgage Agent MKB" successfully completed debut mortgage-backed bonds class "A" placement in the nominal amount of RUB 3.7 bln with maturity of 25 years. International rating agency Moody's assigned a Baa3 (sf) credit rating to senior tranche bonds, reflecting the high quality of the securities.
Asset management, investment and insurance companies expressed their interest in the placement. Demand for the bonds in the final price range exceeded RUB 4.3 bln. According to the marketing results, the interest rate for the first coupon was determined at the level of 10.65% per annum. Subsequent coupons equal to the first coupon. The bonds have quarterly coupon payments.
Class "A" bonds placement was held by public subscription on the MICEX Stock Exchange simultaneously with the placement of class "B" bonds in the volume of RUB 984 mln placed by closed subscription in favour of CREDIT BANK OF MOSCOW. Arranger and placement agent is CJSC "VTB Capital".
"We are pleased to announce the successful closing of the transaction. Today, against the backdrop of difficult economic environment and high economic turbulence, this placement can definitely be recognised as a success. Remarkably and to certain extent uniquely for the Russian market, the vast majority of companies that participated in the transaction are private, and the book was oversubscribed. This once again evidences a high degree of confidence in our Bank and the high level of our reputation in the market " — said Alexey Kosyakov, Deputy Chairman of the Management Board of CREDIT BANK OF MOSCOW.