Sputnik CDO 1 is a five-year, $400 million synthetic CDO on a diversified portfolio of Russian, Kazakh and Ukrainian bank and corporate credits. The transaction will be managed by VTB Bank Austria, a subsidiary of VTB Group that specializes in structured credit.
The capital structure of the CDO includes unrated equity (0% to 10%) and senior equity (10% to 20%), as well as mezzanine tranches rated Ba2, Baa3 and A2 by Moody’s, each issued by a SPV domiciled in Ireland. The risk underlying the transaction is 100% synthetic. The portfolio contains 43 credits, all of which are rated and are issuers of publicly traded external debt.