Gazprombank and DOM.RF successfully completed the placement of a mortgage-backed bond issue in the amount of RUB 59.7 billion. The issuer of the bonds is DOM.RF Mortgage Agent LLC. The coverage of the issue is formed from mortgage loans issued by Gazprombank, 18% of which are pledged under equity participation agreements (EPA). For the first time, the mortgage coverage of bonds included a loan issued for the purchase of an individual residential building being built under an equity participation agreement.
For Gazprombank, the new issue of securities DOM.RF became the largest. In total, since 2020, DOM.RF and Gazprombank have jointly placed seven issues of mortgage bonds with a total volume of more than RUB 265 billion. The issue is a step towards developing the practice of including mortgages for new buildings as collateral for mortgage bonds.
“Gazprombank continues to consistently work to develop the mortgage bond market and expand the list of reliable Russian assets available for long-term investments. The volume of the seventh issue of the MTS DOM.RF once again confirms the success of this work. This transaction will strengthen the Bank's position among the leading banks in terms of mortgage securitization in Russia, while simultaneously increasing the liquidity of the mortgage portfolio and optimizing the Bank's capital management. We will continue to regularly issue bonds on the DOM.RF securities platform,” commented Vladimir Mamakin, First Vice President of Gazprombank.
“Gazprombank plans to further expand the issuance of electronic mortgages for new buildings and scale up the securitization of this product. The Bank was also the first on the market to issue an electronic mortgage for the construction of an individual residential building (IHA) and for the first time included this new, but already very popular product in mortgage coverage. Mortgages for new buildings and individual housing construction are one of the priority areas for the Bank’s mortgage business, as it allows one to obtain a liquid financial instrument already at the construction stage,” commented Alexey Popovich, Deputy Chairman of the Board of Gazprombank.
“Mortgage securitization with the participation of DOM.RF is a driver of banking business and a tool for developing the mortgage market, which helps increase liquidity and reduce the burden on capital. In 2023, we tested the inclusion of e-mortgages for new buildings in the MBS coverage and have now begun scaling the securitization of this product. Gazprombank is one of our key partners, with whom we test and develop new products in the mortgage bond market,” noted Elena Muzykina, Director of the Securitization Division of DOM.RF.
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