On November 6, ChangRong 2018 Series I Auto Mortgage Loan-backed Security (the "Product"), the first auto mortgage loan securitization program originated by ChangAn Auto Finance Corporation (CAAFC), was successfully issued in the interbank bond market. The Product was also the first automotive finance ABS in the western region. The issuing size is nearly RMB 2 billion, including RMB 1.6 billion in senior A tranche, RMB 297 million in senior B tranche and RMB 100 million in subordinate tranche. China Merchants Securities was the lead underwriter, and Bank of China and Industrial Bank Co., Ltd. served as the joint lead underwriters. The interest rate of the senior A tranche was merely 3.59%, and the weighted average coupon rate was 100BP lower than the current bank lending rate.

A Dentons Beijing team, consisted of senior partners Wang Lihong and Wu Libei, and partner He Yuhua, all of whom have rich professional experience in the field of asset securitization, provided a full scope legal assistance on this deal.

CAAFC has the first auto finance license granted by the regulatory authorities in the western region. It is an innovative auto finance company that specializes in the sales and consumption in the automobile industry chain, and provides nationwide, full-brand and full-model services. Its business covers various provinces, municipalities and autonomous regions except Hong Kong and Macau, serving more than 3,000 dealer. It has provided personal auto loan services to millions of consumers.