Moscow, 15 December 2005 –LAWFUEL – The Law News Network – Baker & McKenzie today announced its role as advisor to HVB Group, a member of the UniCredit Group, as the arranger of Russia’s first “true sale” securitization of consumer loan receivables for Russian Standard Bank (RSB).
The transaction, which closed 30 November 2005, securitized EUR 250 million in Rouble denominated consumer loans originated in the ordinary course of RSB’s business. The securitization was effected by the “true sale” of RUR 8.5 billion of consumer loans by RSB to a special purpose vehicle incorporated in Luxembourg. The purchase was funded through the issuance of notes to Salome Limited and mezzanine investors. Salome Limited is a special purpose vehicle managed and sponsored by HVB Corporates and Markets and finances itself by the issuance of asset backed commercial paper which is rated P1/F1 by Moody’s and Fitch respectively.
“The securitization for RSB represents a milestone transaction for the Russian and CIS market,” said Vladimir Dragunov, Banking & Finance Partner at Baker & McKenzie. “This is the first substantial Russian ABS deal which paves the way for Russian companies to gain additional financing options through securitization of their receivables.”
“This transaction demonstrates the ability of our Global Securitization Practice in applying both term and asset-back commercial paper experience and technologies to developing markets,” added Banking & Finance Partner Paul-Michael Rebus.
Advice on securitization and structured finance was provided by an international team led by Vladimir Dragunov, a Partner in Baker & McKenzie’s Moscow office, and Paul-Michael Rebus, a Partner in the Firm’s London office.
