On August 26, 2015, Dacheng, jointly with GF Securities Asset Management (Guangdong) Co., Ltd (“GF Asset Management”), assisted Zhongguancun Science-Tech Leasing Company Limited (“ZGC Leasing”) in completing the first business of asset securitization with the concept of “S&T Lease”. Senior partner Kuang Shuangli, partner Pan Pan, attorney Feng Nannan and other professional team members provided the project with thorough legal support, which was another success after “GF Hengjin—Nanfang Cement Lease Asset Backed Special Scheme”. It is the team’s third ABS project successfully issued this month.
 
“GF Hengjin—ZGC S&T Lease Phase I Asset Backed Special Scheme” issued by ZGC Leasing is the first enterprise asset securitization product with the receivable credit of S&T SME as base asset. The special scheme has successfully raised a fund of RMB 553 mln, for a term of 3 years, at a comprehensive face cost of 5.5%, lower than the average market level, of which its priority ABS A1 raised RMB 240 million, priority ABS A2 RMB 158 million and priority ABS B RMB 102 million. For this issuance, GF Securities Asset Management (Guangdong) Co., Ltd acted as the scheme manager and promoter, which is one of the first teams engaged in asset securitization service in China. It is featured for its profound understanding of the policy orientation for asset securitization. By practicing over the years, the team has achieved high capacity for business undermining and product innovation. With its steady and remarkable performances, ZGC Leasing, with the establishment of less than three years, provided guarantee for its first ABS, with the product nominal interest rate lower than the average market rate, making a splendid show in the capital market.

In recent years, Dacheng has cooperated successfully with GF Asset Management in a number of services for asset securitization, mostly with an innovative structure. The successful issuance of the current special scheme also indicates that the practical exploration of ZGC Leasing for “innovate the financing lease model and serve S&T SMEs” has been highly recognized in the capital market. It is of great significance for widening the financing channel of ZGC Leasing, lowering the financing cost of SMEs, and boosting the development of strategic emerging industries.