The European Bank for Reconstruction and Development (EBRD)said today in a press release that it has invested $50 million in the first securitization made by a Russian private bank since the beginning of the financial crisis.

The deal issued by ZAO Raiffeisenbank, the Russian subsidiary of Raiffeisen Bank International (RBI) securitizes seven-year bonds that are indirectly secured by pledges of ZAO Raiffeisenbank’s current and future U.S. dollar and euro Diversified Payment Rights (DPRs).

Securitization funding will allow the bank to lessen its dependence on client deposits and funding by its parent RBI and also to extend its mortgage lending business in Russia, according to the EBRD report.

The EBRD noted in its release that mortgage lending is growing in Russia. In 2011, the annual volume of mortgage lending in the country jumped to a record of 713 billion roubles ($24 billion), an 87% increase over the prior year.

The deal was issued through a private placement made for the Bank by Roof Russia DPR Finance Company S.A., a special purpose company incorporated in Luxembourg. Other international institutions, such as the International Finance Corporation (IFC) also participated on the deal that was arranged by RBI and WestLB.

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