Dacheng has provided advice in connection with the first credit ABS project of the Industrial Bank, which on 24 January successfully completed bidding and issued ¥5.2bn (£516m) worth of credit asset-backed securities on the National Inter-bank Bond Market, after gaining approval from People’s Bank of China.
The ‘2014 Xingyuan Credit Asset-backed Securities’ is the first approved ABS project launched by a joint-stock commercial bank since August 2013 when the state council decided to increase experiments of the securitisation of credit assets.
It is also the first asset-backed securitisation project to apply the newly stipulated risk retention rule since the securitisation reform of the central bank and CBRC started.
Moreover, it is the single largest securitisation project that has been launched by a joint-stock commercial bank in terms of the size of bidders since 2012.
A Dacheng team led by senior partners Liu Haiping and Liu Fei provided legal service for the securitisation project. This is the first successful asset-backed securitisation project launched by the Industrial Bank that engages the services of Dacheng.
Since the beginning of 2013, the team has advised on eight credit asset-backed and enterprise asset-backed securitisation projects.