Securitization and Syndication

Why VTB?

VTB has Loan Syndications desks based in London and Moscow that underwrite, arrange and trade syndicated loans for financial institutions, corporates and projects globally.

Active in a broad range of industrial sectors including: oil & gas, petrochemicals, fertilisers, metals & mining, pulp & paper, real estate, transportation, power generation and soft commodities. The teams are made up of experienced professionals with a focus on sales and distribution across a global investor base.

 A Leader of the Russian Banking Sector

VTB is one of the leaders of the national banking sector and maintains solid competitive positions in all segments of the banking market. In the Banker's 1000 top global banks in 2005 VTB was ranked 122nd.

VTB has the highest ratings among Russian banks from international rating agencies Moody's Investors Service, Standard & Poor's and Fitch.

• A Wide Network both within the Country and Abroad
  
  Geographic presence of VTB Group is unique. Alongside with the CIS countries, VTB Group operates in West Europe, Asia and Africa. Among VTB Group members are a special retail bank VTB24 and an investment bank VTB Capital plc.
  
  
•  Partners
  
  There are long-standing partnership relations with the leading global investment banks, rating agencies, audit and consulting companies.

Qualified Team

VTB Group team engaged in refinancing, securitization and syndication has gained unique expertise both in Russian and global capital markets. Projects implemented by the team include innovative transactions of Russian assets.

Among them are:

• securitization of car loan portfolio of SOYUZ Bank - the first securitization of Russian assets;
• securitization of mortgage portfolio of Vneshtorgbank - the first securitization of mortgages in Russia;
• securitization of mortgage portfolio of City Mortgage Bank - the first in the Russian practice securitization with warehouse facility;
• in 2008 the securitization of factoring receivables for Eurokommerz was arranged in partnership with Deutsche Bank. It is understood to be the first occasion that factoring receivables have been used to support a term financing.

In 2006-2007 VTB arranged and participated in 54 syndicated loans nominated in Rubles, USD and Euro for the total amount equal to RUB 52 billion.

With a relevant infrastructure and qualification put well in place, VTB Group is ready to assume a key role in arranging refinancing, securitization and syndication deals.

Services

• Arranging Individual Securitization Deals 
  
  For banks having considerable assets portfolios, VTB offers services in refinancing and securitization of their portfolios. Securitization shall allow such banks to enhance their investor base and issue new types of collateralized bonds, improve term structure of their balances, raise long-term resources, gain capital relief and improve ROE.

•  Raising Finance in the Form of a Warehouse
  
  For banks that find it difficult to accumulate their proprietary assets portfolio due to regulatory requirements, but have rather good capacity to generate loans, VTB offers assistance in arranging finance in the form of a warehouse. When such scheme is applied, loan portfolio is accumulated on the balance of the warehouse, but the bank retains its right for the part of excess spread. Once the loan portfolio reaches the necessary volume, the bank's securities are issued in the Russian or international market.

•  Acting as Master Servicer, and Back-up Servicer
  
  Due to VTB having the highest ratings among the Russian banks from international rating agencies, participation of VTB or its subsidiaries in securitization deals as Master Servicer or Back-up Servicer allows getting higher ratings for the securities issues and thus reducing the placement costs.

• Syndications
  
  As one of the leading Arrangers of syndicated loans VTB Group offers to financial institutions and its corporate clients from Russia and other CIS countries a wide range of services in raising funds via syndicated loan market. VTB has a considerable experience in successful bringing Russian and CIS borrowers to both Russian and international syndicated markets using different deal structures and strategies. Deep knowledge of the market and wide geographic presence of VTB Group ensures the most effective coverage of international investors in Russia and other CIS countries, Western and Eastern Europe, Asia and Middle East.