Liniya Prava has announced that it acted as tax advisor to Bank ZhilFinans on the offering of July 26 mortgage bonds of MA Sunrise 1 and MA Sunrise 2 at the Moscow Exchange, "as part of securitization transactions in relation to a portion of Bank ZhilFinans mortgage loan portfolio components."
The total amount of the offer was RUB 2.4 billion. According to the firm, "the securitization projects included 2 transactions, each consisting of three class A, class B and class C mortgage bond tranches." The transactions were organized by VTB Capital, CJSC.
Liniya Prava lawyers provided a detailed review of the Bank's documentation, transaction tax structuring, transaction tax effect review, and issuance of a Tax Opinion based on the project. According to a Zhilfinans press release, "the transactions are noted for a mezzanine bond tranche included in the issuance structure. Such experience is rather rare for Russian market and provides new opportunities, for issuers to increase the amount of raised funds, for investors to place funds in a more lucrative instrument."