China Aircraft Leasing listed a $171.3 million asset-backed securitisation on the Shanghai Stock Exchange on 30 January, making it China’s first foreign currency denominated ABS transaction.
The transaction was issued by its Tianjin-based subsidiary, China Asset Leasing, while Huatai Securities Asset Management is the manager of the deal.
CALC says the deal has been structured in eight tranches with the longest maturity at 7.65 years. All tranches have been given a AAA rating by China Cheng Xin International.
The tranches bear interest rates of between 2.9% and 4%, and are backed by a pool of aircraft from China Asset Leasing. The lessor would not, however, disclose details of the aircraft involved in the deal.
“As China’s first ABS denominated and settled in a foreign currency, and the first ABS in aircraft leasing in the open market, this ABS sets a precedent for major financial innovation, marking a milestone for both the aircraft leasing industry and the development of China’s asset securitisation,” says CALC chief executive Mike Poon.
Prior to launching the ABS, CALC had been active in the Chinese market selling ABS-style sales of its lease receivables to insurers and pension funds.Under those transactions, the lessor retained ownership of the underlying aircraft assets.
Source: Cirium Dashboard
