Moscow/London August 28, 2007 – LAWFUEL – The Legal Newswire – Baker & McKenzie, the global law firm, has announced today that it has advised Home Credit and Finance Bank LLC (HCFB) on the first-ever Russian securitisation of credit card receivables (revolving card loans) originated by HCFB. The securitisation transaction was arranged by ABN AMRO and UniCredit (HVB) and closed on August 23, 2007. Moody’s Investors Service assigned a senior notes rating of Baa2.
The transaction is structured to take advantage of master trust technology which will enable the issuance of future notes through the same structure. It will also allow the issuance of future series with different structural characteristics through new issuer vehicles. The transaction uses sophisticated sale mechanics to sell credit card receivables generated under credit card agreements entered into with HCFB’s customers. The “true sale” of credit card receivables is structured under Russian law and allows HCFB to add new credit card receivables into the securitisation structure.
The securitisation is arranged to finance a total amount of over RUR11.5 billion (app. USD450 million) of the bank’s assets at a competitive rate with the initial funding provided though a warehouse facility.
“After completing the first ever Russian law “true sale” securitisation in Russia, HCFB is able to tap the market with this innovative transaction. This is a very important transaction for the Russian market which securitises a new asset class – credit card receivables. The structure is complex and innovative for the Russian and international capital markets and it provides a flexible platform to HCFB for future issuances, in order to support a dynamic and growing credit card business. This transaction will open the doors to other Russian originators of credit card receivables, which is a fast growing asset class in Russia,” comments Vladimir Dragunov, partner and Head of Russian Securitisation and Structured Finance Practice at Baker & McKenzie.
Advice on securitisation and structured finance was provided by an international team led by Vladimir Dragunov, a Partner in the Firm’s Moscow office and Rebecca Ford, a Partner in the Firm’s London office.List your legal jobs on the LawFuel Network