Dentons advises on two asset securitization deals

Recently, Dentons successfully advised on two asset securitization deals.

On December 18, 2018, Agricultural Bank of China Limited (ABC) successfully issued its Nongying 2018 Series VI Non-performing Assets-backed Securities (the "Product") on the inter-bank bond market. The underlying asset of this Product is the non-performing credit card claims held by the ABC. The issue size of the Product was RMB 264 million. The senior tranche accounted for RMB 203 million, with a rating of AAA, an interest rate of 4.28% and a weighted average maturity of 0.37 year. China Merchants Securities served as the lead underwriter, and Shanghai Trust was the trustee.

The Dentons team advising on this deal was led by senior partner Guo Qing (Beijing), assisted by Wang Yunsong, Liu Jia, Chen Bojian and Dai Yilin. 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.

On December 19, 2018, China First Highway Engineering Co., Ltd. (CFHEC) successfully issued the "CIB – CFHEC Series I Accounts Receivables Asset-backed Securities" on the Shanghai Stock Exchange. The shelf offering scale of the product was RMB 3 billion. The issuing size of this series was RMB 828 million, with an interest rate of 4.48%, a rating of AAA and a maturity of three years. Industrial Securities Asset Management served as the manager, and Industrial Securities was the promotion agency. CFHEC was the originator.

The Dentons team advising on this issuance was led by senior partners Guo Qing and Xu Jianghong, assisted by Wang Yunsong, Liu Jia, Chen Bojian and Dai Yilin. They provided a full scope legal assistance on this deal, including design and demonstration of the deal structure, legal due diligence, legal consultation, draft and revision of the transaction documents, and issuing legal opinions.