SHANGHAI – SAIC-GMAC Automotive Finance Co., Ltd. (SAIC-GMAC) said in a statement on June 26 that it recently completed its forth auto loan Asset-Backed Securities (ABS) transaction, named Rong Teng 2015-1.
The ¥4 billion ($645.16 million) transaction is the largest securitization deal originated by auto finance companies to date and the first PBOC-registered ABS in China after the announcement of PBOC to replace the approval process with a registration approach in April.
In addition to this largest auto loan to date, three auto loan ABS were successively issued by SAIC-GMAC in January 2008, October 2012 and October 2014 respectively, which were aimed to expand its funding channels in pursuit of meeting more diversified customer demands, according to Rick Livingood, COO of SAIC-GMAC.
This ABS consists of a preferential note and a subordinated note. The value of the preferential note is ¥3.58 billion and the expected term of the Note is 596 days. And it received a credit rating of “AAA” rated by China Lianhe Credit Rating Co., Ltd. and China Credit Rating Co., Ltd. and became the largest percentage “AAA” rated note of an auto loan securitization in the local market to date, which accounts for 89.5 percent of the total issuance amount.
“As a leader in the Chinese auto finance market, we continue to partner with the government and our regulators to pioneer the country’s capital markets. This is the first both CBRC-recorded and PBOC-registered ABS in local market, and we are proud of it. As the first company which received the registration approval from the PBOC, we have registered aggregately 1 billion with PBOC, and another two deals are expected to come,” said Yarui Yu, general manager of SAIC-GMAC.
SAIC-GMAC was established in August 2004 as the largest and first professional automotive finance company in China.