KfW and HVB securitize mortgage loans with a volume of EUR 1 billion under the new securitization programme PROVIDE

Frankfurt (ots) - Today HypoVereinsbank was the forerunner in conducting a transaction under KfW's new securitization programme "PROVIDE" with a transaction volume of EUR 1 billion. The programme was developed by KfW with the support of HypoVereinsbank. On the basis of this programme, KfW offers banks the opportunity to securitize housing loans under a highly standardized approach. The objective of PROVIDE is to continue to guarantee a broad supply of housing loans. Securitizing the loans enables the banks to fine-tune their credit risk and to optimize the employment of their equity, which releases potential for the extension of additional housing loans. In order to cut costs, the individual transactions are processed according to a uniform and standardized scheme. The securitization pool for the first transaction "PROVIDE-A 2000-1" covers a volume of approximately EUR 1 billion. The portfolio is comprised of mortgage loans secured via real estate liens that are granted to private homeowners in Germany. In its role as intermediary, KfW initially assumes the entire credit risk of the portfolio evaluated by international rating agencies and broken down into rating categories. In the second step, the risks taken on by KfW are reinsured through modern capital market instruments on the swap and capital markets. Already last December KfW had developed and successfully launched its first securitization programme "PROMISE" together with HypoVereinsbank, among others. Under this programme for the securitization of SME portfolios, already four banks have since securitized SME loans with a total volume of EUR 5.5 billion. These transactions have met with great interest on the part of the investors. In view of the close similarities between the structures of PROVIDE and PROMISE, a high rate of acceptance by investors is expected for the new programme as well. With PROVIDE KfW is making a substantial contribution to the development of trading in risks resulting from housing loans in Germany. It guarantees large and small banks equitable access to the securitization platform. Loan securitization is part of KfW's overall strategy of response to the changing conditions in private housing finance. ots Originaltext: KfW Internet recherchierbar: http://www.presseportal.de For further information please contact: Nathalie Drücke Tel.: (069) 7431-2098 E-Mail: nathalie.druecke@kfw.de Original-Content von: KfW, übermittelt durch news aktuell

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