On October 22, 2014, URALSIB OJSC announced it had successfully closed a second deal on securitization of the mortgage portfolio supported by the Egorov Puginsky Afanasiev and Partners’ Banking & Finance and Capital Markets team.
The deal provided for offering by an SPV (mortgage agent) of three tranches of bonds secured by a pledge over a mortgage pool: two senior tranches, where the issuer’s obligations are performed in the same priority ranking, and a junior tranche, where obligations are performed after those under the senior-tranche bond have been discharged.
The Firm’s associates contributed to Moody’s assigning a rating of Baa3 (sf) the senior-tranche bonds, moreover the securities have been successfully listed on MICEX-RTS on the second level of the List of Securities and have been offered for public subscription. The junior tranche has been bought back by URALSIB OJSC acting as the Originator, thus taking on the deal-related risks.
Insurance of financial risks related to the mortgage bonds by the mortgage agent was an important feature of the deal that impacted the content of the contractual documents.
Egorov Puginsky Afanasiev and Partners’ Banking & Finance and Capital Markets team engaged on the matter included Senior Associate Oleg Ushakov and Associate Nadezhda Morgunova supervised by the Practice Head, Partner Dmitry Glazounov.