Largest issue of mortgage bonds in Russia placed by DOM.RF, VTB – TASS

MOSCOW, December 25. /TASS/. DOM.RF and VTB have placed the largest issue of mortgage-backed securities in Russia worth 207.6 bln rubles ($2.8 bln), the press service of the Russian financial development institution said in a statement.

“DOM.RF and VTB have completed the placement of the issue of mortgage-backed bonds guaranteed by DOM.RF worth 207.6 bln rubles, the largest in the history of Russia’s mortgage market. The previous record was set in 2020, also with a transaction with VTB, as the issue amounted to 191.5 bln rubles,” the statement said.

The coupon yield rate for mortgage bonds was set as 7.65% per annum, with maturity equaling 9.9 years.

Mortgage bonds are securities backed by mortgage loans. Mortgage bonds guaranteed by DOM.RF account for more than 90% of the market of all mortgage-backed securities and roughly for 2% of Russia’s debt market.

The issues of DOM.RF’s mortgage bonds are totally worth over 1.3 trillion rubles ($17.6 bln).

Issuing mortgage bonds is one of the instruments of reaching the targets of Russia’s ‘Housing and urban environment’ National Project. Mortgage-backed securities enable banks to receive market financing for extending new mortgage loans, which allows boosting mortgage lending at lower rates.