China Issues First Asset-Backed Notes via Bond Connect
Xu Wei
/SOURCE : Yicai
China Issues First Asset-Backed Notes via Bond Connect

(Yicai Global) Aug. 13 -- China issued the first of two batches of asset-backed notes in recent days following the start of the bond connect, to which overseas investors can subscribe.

The bond connect is a new mechanism that, starting July 3, lets investors from China and other countries trade in each other's bond markets.

One offering is the Beijing Jingdong Century Trading 2018 Asset-Backed Notes Series I with a registered size of CNY4 billion and issue size of CNY1 billion. Another is the Haitong UniTrust International Leasing 2018 Asset-Backed Notes Series I with registered size of CNY2 billion and issue size of CNY1 billion, China Securities Journal reported Aug. 11, citing data from the National Association of Financial Market Institutional Investors.

The ABN as already attracted subscriptions from overseas investors, NAFMII indicates.

One ABN offering will have a senior class A tranche worth CNY750 million, a senior class B tranche valued at CNY150 million, and a medium class and subordinated tranche of CNY50 million each. All have one and a half-year terms. The introduction of international standards has prompted London and New York-headquartered corporate credit assessment firm Fitch Ratings to give the senior Class A an A+.

The report revealed no further details as to the second ABN.

Editor: Ben Armour 

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Keywords: ABN , Bond Connect , Hong Kong , Bond