PJSC Ukrainian Financial Housing Company (Ukrfinzhytlo), the operator of the state eOselia mortgage program, is working on preparations for an issuance of securitized securities on international capital markets after the end of the war launched by Russia, with the volume potentially reaching about EUR 1 billion, Chair of the Management Board Yevhen Metsger said.
"We are preparing and are indeed the company that will probably be the first to carry out a securitization. We have JPMorgan, which is advising us and guiding us onto the public capital markets," he said during a discussion on the prospects for Ukraine's stock market organized by the Kyiv International Economic Forum last week.
Metsger said that to this end, Ukrainian Financial Housing Company will form mortgage pools equivalent to $2-3 billion.
The head of Ukrfinzhytlo specified that it is still necessary to determine which markets to enter, since the U.S. and European markets have significant differences. "We have to be ready for both," he added.
According to him, the way was paved for the issuance of securitized securities by the law on securitization and covered bonds (No. 15172), which was drafted jointly with the National Securities and Stock Market Commission and the European Bank for Reconstruction and Development (EBRD).
Metsger said that there are many investors on the international market that operate in the housing finance market, such as Belgian fund Revive.
"Let's be honest. We hope that securitization or issues of mortgage eurobonds will be possible after the war. I do not believe that we can do this now. This year or next year, or during the war," the head of the company said.
He added that it is also necessary to adopt bylaws and regulations that will allow for proper preparation for the issuance of securitized securities.
"Therefore, we are moving forward, hoping that we will spend this year and next year usefully so that we can prepare for securitization," Metsger concluded.
