MDM Bank Auto Loan Securitisation

complete

The proposed securitisation project would refinance retail auto loans originated by MDM-Bank (“Originator”), thereby freeing up capital and providing new funding to make new auto loans in Russia. The EBRD would subscribe to mezzanine bonds issued against a securitised portfolio of MDM-Bank’s auto loans. Securitisation is an important source of refinancing. The proposed project would be one of the first and one of the largest car loan securitisations in countries of the Bank’s operation and would accelerate the development of the Russian capital markets by widening the investor base for this asset class. It would also make auto financing more readily available, particularly in the Russian Federation regions, thereby enabling Russian consumers to acquire passenger cars more easily and contributing to increased demand and economic growth. MDM-Bank is a privately owned Russian bank that belongs to top 10 banking institutions in Russia by equity capital. EBRD will invest in mezzanine bonds denominated in USD and securitised by a portfolio of auto loans originated by MDM Bank and provide a USD 20 million guarantee to cover commingling risk. The transaction structure envisages the issuance of approximately USD 450 million of senior and mezzanine bonds (excluding the Originator provided finance) with EBRD subscribing to up to approximately USD 15 million of the mezzanine bonds, and international investors subscribing to the senior and mezzanine bonds. USD 450 million, including financing provided by MDM-Bank. There are no environmental risks associated with the retail lending, therefore there will be no specific environmental requirements associated with this operation. None. Timur Kibatullin, Director Tel: +7495 797 9500 Fax: +7495 960 2250