AGENCY FOR HOUSING MORTGAGE LENDING

Investor Relations


One of the key socioeconomic issues being tackled in Russia today is the formation of a market of affordable housing through an increase in the volume of housing construction and through the creation of the necessary conditions for an increase in consumers purchasing power for real estate by developing a residential housing mortgage lending system.

In September of 1997, in accordance with a Resolution of the Government of the Russian Federation, the Agency for Housing Mortgage Lending (known hereinafter as AHML or Agency) was created. Its sole shareholder is the government.

The Agency is integral to the Federal Target Program Dwelling, that was approved by a Resolution of the Government of the Russian Federation for 2002-2010 and also to the National Project Affordable and Comfortable Housing for Russian Citizens. The Agency was included into the list of strategic enterprises and joint stock companies of the Russian Federation, by an order issued by the President of the Russian Federation. It was also became one of those joint stock companies where the position of the shareholder the Government of the Russian Federation, on questions related to the agenda for the General Shareholders Meeting and the Supervisory Board is determined by the Government of the Russian Federation, the Head of the Government of the Russian Federation, or upon his order, by a Deputy Head of the Government of the Russian Federation (Order No. 91- of the Government of the Russian Federation, dated  23.01.2003).

Currently, AHML is playing a central role in ensuring a stable effective demand for housing real estate in all of Russia and is the main instrument in the implementation of the state program for developing the mortgage lending market.

The international ratings agencies, Moodys Investors Service and Standard & Poors have assigned AHML ratings equal to the sovereign.

According to the ratings agencies, AHMLs ratings reflect the Agencys strong market position, access to mortgage loan refinancing infrastructure, the Agencys long history of operating in this new market and also good profitability figures in combination with a stable interest margin, adequate liquidity and a high level of capitalization. The ratings also reflect the close relationship the Agency has with the Government of the Russian Federation in regards to funding and capitalization.

Currently the government is supporting AHML by providing state guarantees to AHML debt that is acquired through bond issues, increasing its authorized capital and at the same time ensuring an adequate level of capitalization for the Agency. The state guarantees ensure that the Agency will fulfill its obligations on the bonds that it has issued in accordance with the legislation of the Russian Federation.

In 2007-2014 AHML held 11 mortgage-backed bond issues. The bond issuers were mortgage agents that were specially created in accordance with Russian laws.

Beginning in 2009, with the aim of supporting the secondary mortgage securities market, AHML plans to issue guarantees on mortgage backed bonds, issued in accordance with the requirements with the legislation of the Russian Federation and to issue collateralized special-purpose loans.