Russia's MDM Bank is approaching its debut in the ABS markets, with a $430 million transaction on roadshow as of last week, according to a source close to the deal. Led by Dresdner Kleinwort Wasserstein and Merrill Lynch, the deal is backed by auto loans and split into three tranches. A $270.9 million A piece has an average life of 0.92 years and is expected to secure ratings of A-' from either Fitch Ratings or Standard & Poor's and Baa1' from Moody's Investors Service. A $77.4 million B tranche has an average life of 2.32 years and corresponding projected ratings of BBB' and Baa2'. Finally, a $54.8 million C tranche has an average life of 3.28 years and expected ratings of BB' and Ba2'. All the tranches will be priced against Libor.

MDM Bank isn't an unknown in bond markets. The issuer already placed a couple of eurobonds and a subordinated deal in the recent past, according to the source. Fitch, Moody's and S&P give the bank unsecured foreign currency ratings of BB-', Ba2', and B+', respectively. The roadshow kicked of in London last week, and was slated to hit the U.S. this week. Next week it will descend on France, Switzerland and Germany. The arrangers are targeting October 16 as the prospective pricing date, the source said.

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