On July 24, 2015, Xingyin (Industrial Bank) Phase III Credit Asset-backed Securities were successfully issued in the national interbank market, raising 8,291,200,000 yuan, approved by China Banking Regulatory Commission and the People’s Bank of China, with Industrial Bank Co., Ltd. (hereinafter referred to as “Industrial Bank”) acting as originator and truster, and COFCO Trust Co., Ltd. acting as trustee and issuer. The multiple of the bid is 1.73, and the issuing rates of the senior A1, A2, A3, A4 and B tranches are respectively 2.95%, 3.1%, 3.2%, 3.5% and 4.18%.
These securities are the first ultra-short-term and monthly-cashed CLO in the market. They have enriched the structural types of the securities, and also brought in new thoughts and methods to reinforce Asset/Liability Management for banking financial institutes. Meantime, the issuance of these securities is also the first successful case that QFII invested Chinese CLO since the pilot project of securitization started 10 years ago in China.
A Dacheng team from Finance Department, Beijing Office comprising of senior partners Liu Haiping and Liu Fei, and senior partner Dong Wan advised legal services on the subject project with their rich experience in the field of asset securitization business. The team also includes Han Tao, Guo Wenmin, Li Xiang, Xiang Fayou, Chen Xiaorong, Yang Yani, Zhang Fan, He Xin, Tong Jiali, Bi Lan, Yu Chunyan, Huang Ying, etc.
Industrial Bank, founded in August of 1988, is among the first joint-equity commercial banks approved by the State Council and the People’s Bank of China. Since the foundation over twenty years ago, Industrial Bank has always been committed to providing clients with thorough, qualified and efficient financial services. In 2004, Industrial Bank had steady promotions in both the position in the market and the brand image. It ranked in the list of Global Banks 50 (the ranking of The Banker, a UK magazine), Global 500 (the ranking of Fortune, a US magazine) and Global Listed Companies 200 (the ranking of Forbes, a US magazine). Industrial Bank has been selected as “Best Chinese-funded Bank”, “Best Strategically Innovative Bank”, “Best Environmental Bank”, “Best Internet Financial Platform”, “Best Inclusive Finance Performing Bank”, “Most Responsible Listed Company to the Society”, “Outstanding Contribution to Chinese Charity (institute)”, “Chinese Best Employer”, etc. by quite a few authorities in and out of China.