.jpg)
Recently, an Asset-backed Special Plan of Yangzhou Public Housing Trust Beneficiary Rights (hereinafter referred to as “Yangzhou Public Housing Special Plan”) was founded and got listed on the Shenzhen Stock Exchange (“SZSE”) on September 23. Huatai Securities (Shanghai) Asset Management Co., Ltd. is its manager and Huatai United Securities Co., Ltd. is its financial adviser.
The Yangzhou Public Housing Special Plan plans to raise funds of RMB 1.05 billion with 5-year duration. The priority class, rated AA+, will be issued in three tranches. The issuing interest rates for the 3-year to 5-year term priority class will be at the range of 5.29-6.50%.
Shantytown renovation is a significant project for people’s livelihood and development. On July 4 2013, the State Council issued Opinions on Accelerating the Shantytown Renovation Work, encouraging and guiding private capitals to participate in shantytown renovation by means of direct or indirect investment, equity participation, entrusted construction, etc. On July 21 2014, the State Council issued a Notice of Further Accelerating the Shantytown Renovation Work, supporting financial institutions to renovate their products and services and establish a multi-layered and diversified system for the funding needs in shantytown renovation.
Since the Record-filing System replacing Administrative Approval System and being adopted by asset-backed securities business in November 2014, the issuing scale and efficiency has been greatly increased. The Yangzhou Public Housing Special Plan is the first shantytown renovation asset-backed securities product issued under the record-filing system. It helps to provide financing channels for shantytown renovation in the manner of law compliance, convenient operation, cost-effective and stable sources.
The Yangzhou Public Housing Special Plan has an innovative idea to integrate the irregular future income into standardized underlying assets of trust beneficiary rights. Its successful issuance and listing can not only alleviate the funding pressure on enterprises, reduce financial cost, but also can continue to input the raised funds into the public housing construction projects, supporting the healthy development of cities and the peaceful livelihood of the people.
SZSE will, as always, keep close communication with all parties, promote the innovation in asset securitization. At the same time SZSE will also continue to strengthen its supports on shantytown renovation, agriculture, and infrastructure construction.
