On October 29, 2015, 'An Xin Small-loan Asset-backed Securities' led and arranged by Agricultural Bank of China Limited (ABC) were successfully issued. Originator of the project is An Xin Credit Co., Ltd. under Anhui-based Gujing Group. ABC serves as the financial advisor, custodian bank and regulatory bank and CITIC Securities as the project manager and promotion institution. Meanwhile, Gujing Group offers balance payment commitment. The successful issuance is another achievement made by ABC in enterprise asset-backed securitization (ABS).

With an issuance size of RMB314 million for a term of three years, the project will raise funds mainly for providing petty loans for dealers of Gujing Distillery. Financing has long been a problem for small loan companies due to narrow channels and excessive cost. The issuance this time revitalized the stock assets for An Xin Credit and ushered in new financing channels and new modes. It brings forceful support for business development of Gujing Group and introduces new ways for bank-enterprise cooperation. Issuing rate of the senior tranche this time was only 4.88%, hitting the record low in issuing rates of small-loan ABS projects in the exchange market.

The An Xin small-loan ABS project realizes innovation in multiple aspects. In terms of product structure, it adopts the structure of circular purchase, improving the financing efficiency. Regarding operation mode, ABC joint hands with various institutions such as securities traders, lawyers, credit rating agencies and accountants and sets up a specialized team, fully reflecting the strong ability of ABC in market integration.

Commercial banks getting involved in enterprise ABS market and introducing their resources in customer, service, risk control and capital and their project replication ability can facilitate market development and expansion. Since the beginning of this year, ABC has followed the mode of 'market resource integrator' and 'comprehensive financial solution provider'. As a result, it reached out to new fields of investment banking, set up specialized teams and built up series of products. ABC actively participated in enterprise ABS market and took this as an important tool for satisfying the diversified and comprehensive demand of customers. In August, ABC issued 'ABC Ningbo Urban Construction Investment Xingguang Gas', the first asset-backed securities in urban construction investment at Shanghai Stock exchange. After that, ABC issued small-loan asset-backed securities at Shenzhen Stock Exchange again. Presently, it is operating multiple projects in utilities, accounts receivable, property fee collection and Reits. ABC will take ABS as a driving force for satisfying customer need, perfecting service functions, exploring emerging fields and promoting business transformation next step. It will actively participate in domestic enterprise ABS market to drive ahead healthy and rapid business developent.

distributed by