Project description
and objectives:
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The proposed securitisation project would refinance retail auto loans
originated by MDM-Bank (“Originator”), thereby freeing up capital and
providing new funding to make new auto loans in Russia. The EBRD would
subscribe to mezzanine bonds issued against a securitised portfolio of
MDM-Bank’s auto loans.
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Transition impact:
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Securitisation is an important source of refinancing. The proposed project
would be one of the first and one of the largest car loan securitisations in
countries of the Bank’s operation and would accelerate the development of the
Russian capital markets by widening the investor base for this asset class. It
would also make auto financing more readily available, particularly in the
Russian Federation regions, thereby enabling Russian consumers to acquire
passenger cars more easily and contributing to increased demand and economic
growth.
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The client:
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MDM-Bank is a privately owned Russian bank that belongs to top 10 banking
institutions in Russia by equity capital.
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EBRD finance:
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EBRD will invest in mezzanine bonds denominated in USD and securitised by a
portfolio of auto loans originated by MDM Bank and provide a USD 20 million
guarantee to cover commingling risk. The transaction structure envisages the
issuance of approximately USD 450 million of senior and mezzanine bonds
(excluding the Originator provided finance) with EBRD subscribing to up to
approximately USD 15 million of the mezzanine bonds, and international
investors subscribing to the senior and mezzanine bonds.
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Total project cost:
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USD 450 million, including financing provided by MDM-Bank.
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Environmental impact:
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There are no environmental risks associated with the retail lending, therefore
there will be no specific environmental requirements associated with this
operation.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Timur Kibatullin, Director
Tel: +7495 797 9500
Fax: +7495 960 2250
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EBRD contact:
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Yerbolat Rakhmetov, Operation Leader: rakhmety@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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