At one of the nearest meetings the State Commission on Securities and Stock Exchange will register issue of mortgage bonds of “Ukrgasbank” JSB, OJSC – the first issue of mortgage securities in Ukraine.

It was informed my Aleksandr Okhrimenko, Counsel of the Chairman of the Board of “Ukrgasbank” JSB, OJSC, reports the press service of the bank.
 
Mortgage bonds of “Ukrgasbank” JSB, OJSC will be for three years, without on offer, with the yield of 10,5% (coupon – once a quarter). As explained by Mr. Okhrimenko, market study showed that the main part of the mortgage bonds issue will be acquired by non-residents. Therefore, “Ukrgasbank” JSB, OJSC has chosen HVB Ukraine (Kyiv), being a member of “UniCreditBank” to be a pool manager. "For non-residents it is a clear instrument, the yield rate of 10,5% is very attractive for them", explained the Counsel.

Securities of “Ukrgasbank” JSB, OJSC may be interesting for Ukrainian investors as well. For example, State Mortgage Institution: purchase of mortgage bonds is regulated in its charter as one of the means of refinancing. Still, there are no any arrangements with State Mortgage Institution yet, as Mr. Okhrimenko informed. It is likely that the bonds will be interesting for banks.

In autumn the National Bank of Ukraine included this type of securities into the list of instruments, which can be mortgaged for refinancing. If the National Bank of Ukraine really agrees to accept mortgage bonds as collateral, the banks will purchase them at once, as the yield on them is more attractive than on internal state loan bonds (at present the NBU accepts only state securities as collateral).

As Aleksandr Okhrimenko explained, the issues volume is too small to enable the bank to considerably decrease housing mortgage rates. "The bank started from its current effective mortgage loan rates of 12,5%. Accordingly, the rate margin will be 2%. If the investors will accept these securities, in future we can try to offer 8-9% annual yield on them, that is the yield on internal state loan bonds. Then we can speak on decrease of mortgage loan rates", informed the Counsel of the Chairman of the Board.

24.01.2007