VTB 24 securitizes car loan portfolio, raises $275 mln at LIBOR+1.5%
MOSCOW. July 25 (Interfax) - VTB 24 has completed the securitization of its car loan portfolio through which the bank raised $275 million at LIBOR+1.5%, the bank said in a statement.
The organizers of the deal were VTB Capital and Bank of Tokyo-Mitsubishi, the statement said. Financing was received from Bank of Tokyo-Mitsubishi for two years, a source close to the transaction told Interfax.
The sale of the car loan portfolio to a special purpose venture (SPV) will take place at the end of July, VTB 24 said in the statement. This is the first securitization of a non-mortgage portfolio on the Russian market after the crisis. For VTB 24, this is the first securitization of loans for the purchase of cars.
VTB 24 presented the portfolio for sale with yield at the average rate for car loans. The average return on the loans is 18 months to two years.
VTB 24's head, Mikhail Zadornov, commented in January on the bank's plans to securitize its car loan portfolio. The bank initially planned to close this transaction in the first quarter. Zadornov did not specify the size of the transaction but said that securitization generally would mean at least $300 million. Zadornov said last week that the bank would close the deal by the end of this summer.
VTB 24 allocated 31 billion rubles in car loans in the first half of 2012. The bank's total car loan portfolio reached 82 billion rubles (around $2.5 billion).