NHB placed the first ever MBS issue successfully in the Indian capital market during August 2000.
|Sr. No.||Originator||Date of Issue||Pool Size||MBS Pricing Structure (Premium / Par / Discount)||MBS Coupon||MBS Struture||Rating/ Agency name|
|Issue Month||Date of Maturity||No. of Loans||Principal O/s||PTC A Size|
|1||NHB SPV Trust (HP-1)||Aug-00||Aug-07||8329||88.32||59.7||Par||11.85% p.a.||A- B Structure & Guarantee||AAA(So) by CRISIL|
|2||NHB SPV Trust (LP-1)||Aug-00||Aug-07||2777||47.54||43.84||Par||11.85% p.a.||A-B Structure & Cash Collateral||AAA(So) by CRISIL|
|3||NHB SPV Trust (LP-2)||May-01||Apr-08||4292||74.24||46.84||Par||10.25% p.a.||A-B Structure & Cash Collateral||AAA(So) by CRISIL|
|4||NHB SPV Trust (CP-1)||Jun-01||Apr-08||4257||63.4||44.85||Par||10.25% p.a.||A-B Structure & Cash Collateral||AAA(So) by CRISIL|
|5||NHB SPV Trust (CP-2)||May-02||May-09||4256||85.35||58.19||Par||8.90% p.a.||A-B Structure & Cash Collateral||AAA(So) by ICRA|
|6||NHB SPV Trust (BP-1)||Jun-03||Nov-11||3548||77.15||54.45||Par||6.89% p.a.||A-B Structure & Cash Collateral||AAA(So) by ICRA|
|7||NHB SPV Trust (CP-3)||Apr-03||May-12||2007||64.13||59.65||Par||6.25% p.a.||A-B Structure & Cash Collateral||AAA(So) by ICRA|
|8||NHB SPV Trust (DP-1)||Mar-04||Jan-16||3155||69.79||61.83||Par||6.98% p.a.||A-B Structure & Ltd Bank Guarantee||AAA(So) by FITCH & CARE|
|9||NHB SPV Trust (SCB-AB-1)||Mar-04||Dec-12||1437||50.36||42.95||Par||6.15% p.a||A-B Structure & Cash Collateral||AAA(So) by CRISIL|
|10||NHB SPV Trust (Bh-1)||Mar-04||Aug-14||1058||43.65||39.97||Par with Premium Pricing||6.6% p.a||A-B Structure and Cash Collateral||AAA(So) by ICRA|
|11||NHB SPV Trust (Hfc-Bh-2)||May-05||Aug-22||1272||36.17||29||Par||7.16 % p.a.||A-B Structure and Cash Collateral, Guaranteed by NHB||AAA(So) by CRISIL|
|12||NHB SPV Trust (Hfc-Bh-3)||May-05||Dec-14||942||32.63||34.31||Par||7.63 % p.a.||A-B Structure and Cash Collateral, Guaranteed by NHB||AAA(So) by CRISIL|
|13||NHB SPV Trust (Hfc-Bh-4)||May-05||Feb-21||678||30.54||30.97||Par||7.70 % p.a.||A-B Structure and Cash Collateral, Guaranteed by NHB||AAA(So) by CRISIL|
|14||NHB SPV Trust (Hfc-Bh-5)||Mar-07||Feb-23†||801||98.94||93.14 $||Par||8.88% p.a.||A1-A2 Structure, ERP and Cash Collateral||AAA(So) by ICRA|
NHB’s RMBS Institutional Structure
|i. Originator||HFC / Bank|
|ii. Special Purpose Vehicle||NHB SPV Trust(s)|
|iii. Trustee||National Housing Bank|
|iv. Issuer||NHB SPV Trust(s)|
|v. Servicer (Payments)||HFC / Bank|
|vi. Loan Administrator (Custody of Documents, Collections, Recovery Management/Enforcements)||HFC / Bank|
|viii. Financial / Structuring / Legal Documentation||NHB|
|ix. Issue Arrangers||Merchant Banking Institutions|
|x. Due Diligence Auditor||Statutory Auditors of HFC / Bank|
|xi. Depository||National Securities Depository Ltd.|
|xii. Registrar and Transfer Agent||National Housing Bank / Beetal Financial Services Ltd.|
All the above issues were fully subscribed by institutional investors including Insurance Companies, Mutual Funds, Financial Institutions, and Commercial Banks.
The above securitisation transactions of NHB, involved assignment of retail housing loans from the HFCs to NHB. The loans, repayable in equated monthly instalments (EMIs), were packaged and offered to investors as Pass Through Certificates (PTCs) by NHB, acting as Issuer and Trustee. The housing loans, which constituted the receivables to be securitised, were held by a Special Purpose Vehicle (SPV) in the nature of a trust, declared by NHB. The PTCs are in the nature of trust certificates and represent proportionate undivided beneficial interest in the pool of housing loans.
NHB in its corporate capacity as also in the capacity of sole Trustee of the SPV Trust, was the issuer of Class A and Class B PTCs. While the Class A PTCs were allotted to investors, Class B PTCs were subscribed entirely by the originators. Class B PTCs were subordinated to Class A PTCs and acted as a credit enhancement for Class A PTC holders. The Class A PTCs of the above MBS issues of NHB were rated AAA(So).
While the launch of the pilot issue of MBS has indeed been a landmark, NHB has been working towards development of systems and building of institutions in order to make the MBS market sustainable in the long run. In this process, NHB’s efforts are directed at equipping the market participants with adequate understanding of the MBS products and generating sufficient awareness about the issues, risks and benefits associated with the MBS instruments as also gradually widening the investor base, which is essential for a successful secondary mortgage market in the country.
RMBS Pools: Collections and Payments as on September 30, 2010
Following the redemption of the Class A PTCs issued to institutional investors under the above 14 transactions, the SPV Trusts were successfully closed and no RMBS transaction was outstanding as of March 31, 2014. There was no tapping of cash collateral in any one of the above transactions except for one transaction involving premium pricing, the same being in line with the structure of the transaction.