CORRECTED - Russian agency plans $675 mln mortgage-backed bonds

(Corrects para 1 to show the agency plans to issue 10 billion roubles of securities on the domestic market, not 16 billion)

MOSCOW, May 21 (Reuters) - Russian mortgage agency AIZhK plans to issue 10 billion roubles ($422.3 million) of mortgage-backed securities on the domestic market and hopes to tap the reviving global market for the bonds.

"This will be a 10 billion rouble issue in the fourth quarter (of 2008 on the domestic market) and we also plan an international deal worth 6 billion roubles ($253.4 million)," the head of AIZhK structured finance department Natalia Koltsova told reporters on Wednesday.

"The structure of the deal is now being discussed. We are waiting for the situation to improve," Koltsova said.

Europe's mortgage-backed bond market seized up after a crisis in the U.S. subprime housing market prompted a global credit crunch last August, as investors shunned complex securities even where underlying credit quality remained good.

On Monday, Britain's biggest mortgage lender HBOS Plc HBOS.L sold 500 million pounds ($982.7 million) of bonds backed by home loans in the first deal of its kind since July 2007 signalling the market is opening up again.

AIZhK, or the Agency for Home Mortgage Lending, is currently banned from placing mortgage-backed securities (MBS) abroad but hopes the legislation will be changed.

Koltsova said the agency saw reduced demand for mortgage-backed bonds but counted on the support of Russia's government, its sole shareholder, which is expected to allow the state pension fund to invest in its securities.

A subsidiary of AIZhK is currently placing 10 billion rouble MBS in two tranches on the secondary market RU0A0JPN21=MM. Koltsova said the placement will be completed in July-September.

The agency also plans to issue 28 billion roubles of straight corporate bonds in four tranches not earlie than in the fourth quarter of 2008 and in 2009, Koltsova said. (Reporting by Yelena Fabrichnaya; Writing by Olga Borodina; Editing by Maria Kiselyova)