An originator in the Czech Republic has closed a deal backed by payment cards, an asset that is mass marketed in Eastern Europe and Russia, according to sources close to the deal. Home Credit, a leading provider of consumer credit in the country, closed a CZK4.79 billion ($214 million) deal on June 2, with a senior tranche of CZK4.14 billion dropped into a conduit of structurer and lead manager HVB, a source said. Pricing on that piece came to 80 basis points over one month Pribor (Prague Interbank Offered Rate). A pair of investors bought the subordinated piece totaling CZK645 million at 190 basis points over one month Pribor, which was managed by Czech bank PPF banka.
Both PPF banka and Home Credit belong to the PPF group, a major financial conglomerate in Central Eastern Europe. Moody's Investors Service and Standard & Poor's rated the senior notes A2' and A,' respectively. Moody's gave the subordinated piece Baa2.' The structure has a full substitution period to April 30, 2009, when a bullet redemption is expected at the call date. The legal final maturity is April 30, 2015.