Date:30/03/2005 URL: http://www.thehindubusinessline.com/2005/03/30/stories/2005033001990600.htm

Back NHB securitises housing loans of Birla Home

Our Bureau

New Delhi , March 29

NATIONAL Housing Bank today launched a new phase of securitisation programme with three issues of Residential Mortgage Backed Securities (MBS) involving housing loans originated by BHW Birla Home Finance Ltd (BBHFL).

These securities are for aggregate Rs 99.34 crore of housing loans provided by BBHFL, a subsidiary of the Germany-based BHW Holdings AG.

"So far, RMBS involved credit enhancement by originator. We thought it fit to supplement credit enhancement by our bank," said NHB Chairman and Managing Director, Mr P.K. Gupta, at a conference. The transaction involves the assignment of pool of retail housing loans from BBHFL to NHB.

The loans, repayable in EMIs, are packaged and offered by NHB as two forms of Pass Through Certificates (PTCs) - the Senior Class A PTCs and the Subordinate Class B PTCs.

The Class A PTCs would be issued to various institutional investors and Class B PTCs would be subscribed entirely by the originator (BBHFL).

The aggregate value of Class A PTCs of the three issues is Rs 94.28 crore and that of the Class B PTCs is Rs 5.06 crore.