Russian bank VTB 24 is looking to do a securitization of its car loan portfolio and might announce this transaction in 1Q12, according to Interfax Information Agency report.
The bank's CEO and President Mikhail Zadornov said in a briefing that the bank is currently in negotiations with a western player for the non-home loan portfolio.
He did not confirm the size of the deal, but said that generally securitization deals are sized over $300 million, according to the report.
VTB 24's car loan portfolio increased from RUB51.7 billion to RUB71.1 billion in 2011.
VTB 24 is also considering a securitization of its portfolio of home loans under its Vnesheconombank program and home loans acquired from KIT-Finance Bank, the report indicated.
In December Russian Bank Vozrozhdenie closed a securitization deal on mortgage loans. The Class A bonds amounting to RUB2.931 billion were placed via public offering on MICEX, while the Class B bonds worth RUB1.14 billion were acquired by the bank.
Moody’s Investors Service rating agency assigned a 'Baa2' rating to Class A bonds. VTB Capital was the underwriter of the issuance. The price of each Bond comprised RUB1,000, which is 100% of nominal value.
“Despite tight liquidity in the Russian banking system we have managed to close the securitization deal within the planned timeframe and attract long-term financing to fund our operations," said Alexander Dolgopolov, deputy chairman of the bank’s management board when the deal closed at the end of December 2011. "Moreover, the deal will support the bank’s liquidity position in the long-term perspective. We have securitized a part of the mortgage portfolio, that has already exceeded Rub 15 billion.”
It was the first RMBS from a standalone, not-government-related bank post-crisis.