The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Securitization: Up to $500 million in pipeline from Ukraine

Ukraine is the latest emerging market in which asset-backed securities are being issued, with both international and domestic transactions appearing in recent weeks.

Privatbank, the country’s largest financial institution, kicked off international issuance with a $180 million residential mortgage-backed securitization via UBS.

Ukraine Mortgage Finance No 1 had to overcome several obstacles that had stymied ABS issuance from the country. Primary among these was the fact that even the best Ukrainian credits still have sub-investment-grade ratings. Ba2/B rated Privatbank successfully hurdled that barrier with the help of political risk insurance from Zurich Emerging Markets Solutions, which enabled the $134 million senior tranche to achieve the Baa3/BBB– investment grade ratings necessary to attract mainstream ABS investors to a new jurisdiction. Andrew Dennis, head of ABS syndicate at UBS in London, says: "We certainly needed the PRI element to sell the senior tranche outside of a pure emerging markets investor audience." He adds that it had been sold to a mix of European and offshore US accounts looking for a diversification and yield pick-up play versus more traditional fare from continental Europe.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree