Dentons advises Agricultural Bank of China on securitization of non-performing assets

Recently, Dentons advised Agricultural Bank of China Limited (ABC) on successfully issuing its Nongying 2018 Series IV Non-performing Assets-backed Security (the "Product"). The product was successfully established on September 18, 2018. The issue size of the senior tranche was RMB 109 million, with a rating of AAAsf and an interest rate of merely 5.00%. The underlying asset of this product is the credit card accounts treated as non-performing assets held by the ABC's Credit Card Center.

Shanghai Trust acted as the issuer and trustee, and China Merchants Securities served as the lead underwriter. The Dentons team was led by senior partner Guo Qing (Beijing), assisted by Wang Yunsong, Liu Jia and Chen Bojian. They provided a full scope legal assistance on this issuance, including designing and demonstrating deal structure, legal due diligence, legal consultation, drafting and revising transaction documents, and issuing an attorney's opinion letter.