King & Wood Mallesons advises China Huarong on CLO securitisation trust scheme

King & Wood Mallesons has advised China Huarong Asset Management Co on phase one of the Huayuan 2014 collateralised loan obligation (CLO) securitisation trust scheme.

The size of note issuance is approximately ¥1.226bn (£123m) This transaction was the first securitisation project that had been originated by an asset management company since the securitisation market in mainland China re-launched in 2012 and the first CLO transaction in China that innovatively solved the issue of real property mortgage transfer.

China Huarong is a large state-owned non-bank financial company co-sponsored by the Ministry of Finance and the China Life Insurance (Group) Company. It has 32 subsidiaries across 30 provinces, autonomous regions, municipalities and HKSAR.

It provides fully licensed, multifunctional and comprehensive financial services, including asset management, banking, securities, trust, leasing, investment, funds, futures and real estate. 

King & Wood Mallesons’ team was led by partners Roy Zhang, Liu Zhigang and Zhou Jie.