HCFB deal unlocks Russian securitization

March 01, 2006


Some features of HCFB's securitization are unique and innovative not only for Russia but also in the international capital markets context. Vladimir Dragunov describes how the deal was structured

At the end of 2005, Eurasia Structured Finance No 1 launched a securitization programme of about €300 million to finance the purchase of domestic consumer loans originated in Russia by Home Credit & Finance Bank (HCFB). The assets backing the notes are unsecured point-of-sale rouble loans to individual Russian borrowers to finance the purchase of household goods and consumer electronics.

This novel transaction, lead managed by HVB Group, paves the way for Russian originators to gain additional financing options through securitization. It represents the first securitization of consumer loans in Russia and the CIS. It is also the first true-sale structure carried out under Russian law. The senior notes in the structure (A-1 notes) received a Baa2 rating from Moody's (HCFB is rated at Ba3), the highest rating for a Russian note so far. The rating addresses the expected loss posed to investors by the legal final maturity and for...



"The culture is not to disclose. And that’s partly driven by the rules"

The SFC's Martin Wheatley on the problem of disclosure in Hong Kong

Web seminars

US and EU hybrid capital
February 3 2010
The future of hybrids, in a popular discussion between IFLR, Morrison & Foerster and Calyon

Latest Issue

March 2010

Basel III: The revenge of Basel
New Basel rules are affecting everyone differently. In the UK banks are worried about grandfathering, in Germany the headache is hybrids and in the US it's risk structures. Meanwhile Japan has some tips and Hong Kong structured its first hybrid [more]