Washington DC, May 31, 2007 -- IFC, the
private sector arm of the World Bank Group, has provided credit enhancement
for the first public securitization by ZAO Raiffeisenbank Austria, the
Russian subsidiary of Raiffeisen International. This securitization
of auto loans will support lending growth in the Russia’s consumer sector.
The securitization in the amount of $400 million, originated by ZAO Raiffeisenbank
Austria, was placed successfully with international investors on May 16,
2007. IFC supported the issuance through its purchase of $12 million of
the mezzanine Class C notes.
The transaction, lead managed by JPMorgan and Raiffeisen Zentralbank (RZB),
marks Russian Raiffeisenbank’s entry into the international asset-backed
securities market. The auto loans originated by Raiffeisenbank were sold
to a special-purpose entity named ROOF Russia S.A., which issued floating-rate
term notes and senior variable funding certificates that were purchased
by two commercial paper conduits and were backed by the auto loan collateral.
The use of both commercial paper and term note funding for the SPV
was a notable innovation of the transaction. The term notes were
tranched into several classes with ratings by Fitch and Moody’s Investor
Service ranging from A-/A3 to B/B2.
Including the current transaction, IFC has supported Russian entities’
access to the asset-backed securitization market through participations
in four securitizations across several asset types, including auto loans,
consumer loans, and residential mortgages.
Jerome Sooklal, IFC Director for Central and Eastern Europe, said, “Given
that the consumer loan portfolio of Raiffeisenbank is expected to increase
substantially after the merger with Impexbank, this transaction is expected
to support lending growth in the consumer sector and in the regions.”
Jyrki Koskelo, IFC Director for Global Financial Markets, added, “One
of the elements of IFC’s financial markets strategy in Russia is to develop
the securitization market. Raiffeisenbank is a first-time originator
in Russia. This transaction provides it with an alternative funding
mechanism to meet the high demand for consumer finance in Russia and deepens
the development of the Russian asset-backed securities market.”
Patrick Butler, Member of the Managing Board of Raiffeisen Zentralbank
Österreich responsible for treasury and investment banking, said, “The
deal marks one of the largest asset-backed securities transactions in Russia.
The asset quality, rating, and pricing structure have clearly given
this transaction benchmark status.” Martin Grüell, CFO of Raiffeisen International,
adds, "We actively manage our risk exposure to retail clients in the
region. Our ability to place certain portfolio risks to specialized investors
participating in the transaction allows us to further improve the effectiveness
of our lending strategy. We appreciate IFC’s support in this structured
finance transaction."
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable
private sector companies and other partners in generating productive jobs
and delivering basic services, so that people have opportunities to escape
poverty and improve their lives. Through FY06, IFC Financial Products has
committed more than $56 billion in funding for private sector investments
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. IFC Advisory Services and donor partners have
provided more than $1 billion in program support to build small enterprises,
to accelerate private participation in infrastructure, to improve the business
enabling environment, to increase access to finance, and to strengthen
environmental and social sustainability. For more information, please visit
www.ifc.org.
IFC in Russia
Russia became a member and a shareholder of IFC in 1993. Since then
IFC has invested $3.4 billion in the country, including $527 million in
syndicated loans, in over 130 projects across a variety of sectors. In
FY06, IFC’s investments reached $519 million. IFC’s investment
portfolio in Russia stands at $2 billion, making it the largest country
exposure for IFC globally. IFC has invested in key sectors, including
agribusiness, banking, construction materials, health care, housing finance,
information technologies, infrastructure, leasing, mining, oil and gas,
pulp and paper, retail, and telecommunications. For more information,
visit www.ifc.org/europe.
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