On February 19, 2014 CJSC «Mortgage Agent APB 2», a special purpose company established by «Asian-Pacific Bank» (Open joint-stock company) for the purpose of securitization, completed placement of Class A residential mortgage-backed securities (RMBS) on the MICEX Stock Exchange.
The issuance documents provide for the total amount placed to be RUB 3,040 mln, from which RUB 2,553 mln is Class A senior RMBS and RUB 486 mln is Class B bonds. The bonds have 30 years maturity, Class A bonds’ coupon rate is determined to be 9.0% p.a., coupon will be paid quarterly together with a partial repayment of the nominal amount of the bonds in accordance with payments waterfall determined by the issuance documents. On the placement date international rating agency Moody’s assigned Baa3 (sf) credit rating to the Class A bonds which reflects high reliability of the securities.
Asian-Pacific Bank arranged the transaction with Agency for Housing Mortgage Lending acting as co-manager. The Class A bonds for the total amount of RUB 1.5 bln were placed under AHML’s program for acquiring RMBS, the remaining part for the total amount of RUB 1 bln was placed among market investors.
“This transaction is the second successful deal in line for Asian-Pacific Bank and we are especially pleased to notice that the professionalism of our team, high quality of mortgage portfolio and corresponding changes in regulations allowed us to reduce the credit enhancement level to 16% compared to 25% in the year 2012 debut transaction. Securitization will allow us to diversify the funding base and attract additional liquidity while reducing pressure on the capital adequacy ratio. Proceedings from the transaction will be used for the development of APB’s mortgage programs which are in demand in Siberia and the Far East,” commented Mikhail Pavlov, Deputy Chairman of the Executive Board of Asian-Pacific Bank.