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Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
BTA Ipoteka Mortgage Securitization
Project ID
Fiscal year
Not Active
Guarantee holder
First Kazakh Securitization Company, B.V.
Investor country
Host country
Environmental category
Capital Markets
Gross exposure
 $10.2 million
Project type

MIGA has issued $10.2 million in guarantee coverage to the First Kazakh Securitization Company, B.V., and $90,000 to ABN AMRO Bank N.V., for a securitization of residential mortgage loans in Kazakhstan. MIGA is providing political risk coverage for a portion of interest payments on the mortgage portfolio in the event of government-imposed transfer and convertibility restrictions, as well as for expropriation.

The transaction, valued at $141.4 million, is Kazakhstan’s first long-term capital markets issue for a true-sale securitization of mortgages. First Kazakh Securitization Company B.V. will use the proceeds of the issue to refinance the original warehousing arrangements put in place in February 2006 to fund the purchase of receivables arising from Kazakhstani mortgage loans originated by BTA Ipoteka, the consumer lending subsidiary of Bank Turan Alem. The loans are secured on properties located in the Republic of Kazakhstan. MIGA insured the first stage of this securitization in 2006.

Kazakhstan has experienced remarkable growth in its residential mortgage market in recent years. The MIGA guarantee will help further Kazakhstan’s efforts to support the growth of financial instruments for leasing, mortgages and other assets.

This is MIGA’s fourth capital markets transaction. MIGA’s coverage was instrumental in increasing the transaction’s rating by Fitch to A- (above the country ceiling of BBB+).

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