Local securitization points the way ahead for emerging markets

IN LATE MARCH, Russian Standard Bank undertook a groundbreaking transaction when it issued a €300-million consumer loan deal. Although not the first securitization of Russian domestic assets – that honour goes to Home Credit and Finance Bank for its consumer loans securitization last December – it was the biggest deal of its kind and, as such, attracted the attention of ABS investors as well as emerging market specialist funds.

The deal, which was lead managed by Barclays Capital, HVB and JPMorgan, and took more than six months to plan, attracted more than 40 investors, mostly from the UK but also from Germany, Austria and elsewhere in Europe.

The transaction was the first of three landmark securitizations from Russia in the last week of March – the others were from Alfa Bank and Russian Railways – and demonstrates the growing popularity of structured finance as a financing...