17 September 2020
EPAM Successfully Advises on Securitization of the Absolut Bank Mortgage Loan Portfolio

Banking & Finance and Capital Markets lawyers at EPAM concluded counselling on the fifth securitization of the Absolut Bank mortgage loan portfolio. The aggregate transaction amount exceeded 3 billion rubles.

What made this transaction especially significant was t its structure, which met the criteria of Schedule 1 of  Bank of Russia Regulation No. 647-П. This set of unique solutions secured Absolut Bank’s opportunity to become the first mortgage-backed securitization originator on the Russian financial market to calculate the credit risk value as per a special procedure provided by the above regulation.

It would have been impossible to apply Bank of Russia Regulation No. 647-П, if the common securitizations approach had been applied without adjustments. The alternative solutions that were suggested by attorneys of the Firm were ultimately responsible for securing a premium deal which was made evident when the Analytical Credit Rating Agency assigned the highest possible fianlcredit rating – AAA(ru.sf) – to the bonds.

The project team consisted of Dmitriy Glazounov, Head of Banking & Finance and Capital Markets at EPAM, and junior lawyers from the  practice lead by Senior Associate Vladimir Goglachev.