Mortgage

Largest issue of mortgage bonds in Russia placed by DOM.RF, VTB – Business & Economy

Largest issue of mortgage bonds in Russia placed by DOM.RF, VTB - Business & Economy
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Moscow, 25 December. / TASS /. DOM.RF and VTB each floated the largest issue of mortgage-backed securities in Russia with a value of 207.6 billion rubles ($2.8 billion), the press service of the Russian Financial Development Corporation said in a statement.

“DOM.RF and VTB have completed the issuance of mortgage-backed bonds secured by DOM.RF in the amount of 207.6 billion rubles, which is the largest in the history of the mortgage market in Russia. The previous record was set in 2020, also through a deal with VTB in which the volume reached Issue 191.5 billion rubles.

The coupon rate of return for the mortgage bond is 7.65% per annum, with a maturity equal to 9.9 years.

Mortgage bonds are securities backed by mortgage loans. Mortgage bonds secured by DOM.RF account for more than 90% of the market of all mortgage-backed securities and nearly 2% of the Russian debt market.

DOM.RF’s mortgage bond issues amount to more than 1.3 trillion rubles ($17.6 billion).

Issuance of mortgage bonds is one of the tools for achieving the goals of the National Project on Housing and Urban Environment in Russia. Mortgage-backed securities enable banks to receive funding from the market to extend new mortgage loans, allowing for the promotion of mortgage lending at lower rates.

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