VTB Capital has closed a Rb8.2bn (€181m) securitization backed by a portfolio of mortgages from Russia’s Absolut Bank. It managed to price the bonds at a lower coupon than for a similar deal put together for the same originating bank in April 2013.
The Rb6.9bn senior tranche of bonds was privately placed with domestic investors and pays a fixed rate of 8.9%. This was done “under market conditions outside of government support programmes”, according to an announcement from VTB Capital.
These government support programmes refer to the Agency for Housing