Russia's Alfa Bank returned to the structured finance market last week, issuing a five-year legal transaction backed by diversified payment rights (DPRs), with one tranche in dollars and another in euros. A 230 million ($306 million) tranche priced at 190 basis points over three-month Euribor, while a $260 million piece priced at 190 basis points over three-month Libor, 30 points outside the first $350 million transaction placed last March. Moody's Investors Service rated the new deal Baa3'.

Dresdner Kleinwort Wasserstein and Merrill Lynch led the transaction, which was sold to a diverse group, according to a source close to the deal. The euro tranche went to roughly 25 investors, with the book dominated by ABS - as opposed to emerging market - aficionados. Bank investors took about 40% of the euro-denominated piece. As per the geographic breakdown, the U.K. accounted for 40%, Ireland for 25%, and the continent snapped up the rest.

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