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29.10.2001 – 10:09


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
    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
ots Originaltext: KfW
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For further information please contact:
Nathalie Drücke
Tel.: (069) 7431-2098

Original content of: KfW, transmitted by news aktuell

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