• 400 million US-dollar auto loan securitisation successfully placed
• Best ever rating and capital structure for a Russian Auto ABS transaction
• Extremely well-priced: 95 basis points above LIBOR for the senior tranche
• Underlines Raiffeisen''s strong origination position in Russia
Today, a securitisation of auto loans in the amount of 400 millionUS-dollars, originated by ZAO Raiffeisenbank Austria, the Russiansubsidiary of Raiffeisen International, has successfully been placedwith international investors. Under the transaction which has beenarranged by JPMorgan and Raiffeisen Zentralbank Osterreich,Raiffeisenbank has sold a portfolio of auto loans to a special-purposeentity named ROOF Russia S.A.. ROOF Russia will fund the purchaseamongst others from the proceeds of a series of asset-backed securedfloating rate notes. These notes, which represent different riskclasses, have been rated by Moody''s Investor Service and Fitch Ratings.
The most senior tranche reflects in total 89.3 per cent of the portfolioand has received A3/A-minus Ratings by Moody’s and Fitch respectively. So far, Russian asset backed securities (ABS) transactions have only achieved ratings in the Single-A area. Its overall rating structure places the transaction amongst the highest ever publicly rated securitisation transactions undertaken in Russia and is reflective of Raiffeisenbank''s robust underwriting standards and, generally, of its strong market position in the increasingly competitive Russian consumer finance market. The high quality of the underlying assets is also reflected in the very competitive spread of the Class A-Notes of 95 basis points above LIBOR (London Interbank Offered Rate).
"This deal marks one of the largest ABS transactions in Russia to date.The asset quality, rating and pricing structure clearly give thistransaction benchmark status", said Patrick Butler, Member of theManaging Board of RZB responsible for Treasury and Investment Banking."95 basis points over LIBOR represent the tightest pricing so farachieved in this sector– reflecting growing investor demand."
The legal final maturity of the transaction is 10 years. The securitisedauto loans are US dollar-denominated and carry fixed rates of interest.All auto loans are amortising and are granted to middle and high-incomeborrowers for the purchase of new non-Russian vehicles.
The transaction marks Raiffeisen''s successful entry into theinternational asset backed securities market as a source of competitivefunding and will support the further expansion of Raiffeisenbank''sactivities in the Russian market."We actively manage our risk exposureto retail clients in the region. Our ability to place certain portfoliorisks to specialised investors participating in the transaction allowsus to further improve the effectiveness of our lending strategy", saidMartin Groll, CFO of Raiffeisen International.
Sergei Monin, Member of the Managing Board, Head of Treasury of ZAORaiffeisenbank Austria commented on the results of the deal and said:“The capital structure and the narrow price range fully reflect Raiffeisenbank''s high underwriting standards. We are very satisfied with the results of this first deal, as the created business model points the vector of our bank''s further development”.
Strong position on Russian consumer banking market
Raiffeisen International Bank-Holding AG, part of RZB Group, is thelargest foreign banking group in Russia according to Interfax''s Centrefor Economic Analysis (Interfax-CEA). Raiffeisen International,represented in Russia by Raiffeisenbank Austria and Impexbank, is theseventh-largest bank in Russia in terms of total assets, Interfax-CEAreported, citing data from 1 January 2007, based on Russian AccountingStandards. Total assets of both banks amounted to over 287.5 billionrubles (7.8 billion euros)*.
Together, Raiffeisenbank and Impexbank are ranked 3rd in Russia in termsof consumer deposit volumes (79.5 billion rubles, approximately 2.2billion euros)* and 4th in consumer lending (48.6 billion rubles,approximately 1.3 billion euros)*, Interfax-CEA reported. The mostsignificant factor in the business development of RaiffeisenInternational in Russia is the constant expansion of the sales network,which is spread across the country, providing access to more than 140million people.
Raiffeisenbank Austria is a universal bank, focussing in equal measureon commercial, retail and investment banking activities. It startedoperations in 1996 and is ranked 10th in Russia in terms of assets,based on 2006 results (Interfax-CEA). In February 2007, top businessmagazine Global Finance named the Raiffeisen Group Russia''s BestOverseas Bank.
Established in 1993, Impexbank is also a universal bank, and is rankedamong the top 30 Russian banks in terms of assets and equity and amongthe top 10 retail banks. The bank''s customers are serviced through 197business outlets, and about 400 points of consumer lending.
* Exchange rate of the Central Bank of Russia for 1 January 2007: 1 euro= 36.6965 rubles.
All data based on the Russian Accounting Standards.
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Raiffeisen International operates one of the leading banking networks inCEE. 18 markets are covered by subsidiary banks, finance leasingcompanies and two representative offices. Over 12 million customers areattended to through more than 2,850 business outlets. RaiffeisenInternational is a fully consolidated subsidiary of RaiffeisenZentralbank Osterreich AG (RZB), which owns 70 per cent of the commonstock. The remaining 30 per cent is free float, the shares are traded onthe Vienna Stock Exchange. RZB is a leading corporate and investmentbank in Austria and the central institution of the Austrian RaiffeisenBanking Group, the country''s largest banking group.
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