ABN AMRO has crafted the first true sale of Kazakh mortgages to a cross-border SPV, paving the way for an RMBS that could turn out to be Kazakhstan's first in the capital markets.

The vehicle, dubbed the First Kazakh Securitization Company, has been snapping up loans originated by BTA-Ipoteka, a unit of Turan Alem, one of Kazakhstan's three leading commercial banks. An ABN conduit finances the purchases. When First Kazakh hits critical mass a bond will be issued, now slated for the end of the second quarter, according to a source close to the deal. The Multilateral Investment Guarantee Agency, an arm of the World Bank Group, is providing political risk insurance on the loans for up to $75 million, according to Olga Sclovscaia, senior underwriter at MIGA. The agency can increase the coverage.

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