I. Product description

Securitized products include asset-backed notes (ABN), asset-backed securities (ABS), BFAE accounts receivable and debt financing plan and infrastructure REITs.

(1) ABN: It is a securitized financing instrument issued by a non-financial enterprise through an issuing carrier for the purpose of financing and revitalizing assets, backed by the cash flow generated by the underlying assets as income and paid by means of principal and interest repayment as agreed. We can act as the lead underwriter to provide underwriting services to enterprises.

(2) ABS: We are entrusted by special plan managers or jointly by special plan managers and financing enterprises to promote the offering of corporate asset-backed securities as a marketing agency.

(3) BFAE accounts receivable and debt financing plan: It refers to a structured debt financing plan used by non-financial enterprises with the cash flow generated by the underlying assets as repayment support and listed in a non-public and targeted manner through an issuing carrier. We act as the lead underwriter to provide underwriting services to enterprises.

(4) Infrastructure REITs: It refers to a standardized financial product, through non-financial enterprises transferring infrastructure projects to special-purpose carriers such as infrastructure asset-backed securities, which are actively managed and operated by fund managers, and most of whose income generated is distributed to investors holding shares in public funds. We provide joint promotion services for enterprises as a marketing agency.

II. Product features

It can be used to revitalize the stock assets of enterprises and accelerate cash flow-back. The securitizable underlying assets include property rights such as enterprise receivables, lease claims, credit assets and trust beneficiary rights, real estate properties such as infrastructure and commercial properties, or right to proceeds from real estate, as well as other property or property rights recognized by regulatory authorities.

III. Applicable clients

It is suitable for non-financial enterprises. Such enterprises have high-quality underlying assets with clear property rights and can generate stable cash flow. The business and financial conditions of financing entities are good.

IV. Business cases

(1) We assisted ** Co., Ltd. (AAA state-owned enterprise) to issue a total of RMB 7 billion of securitized products in interbank and exchange asset markets, and our sales share was as high as 39%, which was the highest proportion among the financial institutions cooperated with the financier;

(2) We underwrote and promoted China’s first “three green” bus fare ABS (green entity + green underlying assets + use of green funds) and China’s first bus fare ABN for carbon neutrality of Guangzhou ** Co., Ltd. (AAA state-owned enterprise). Our sales share accounted for the highest proportion among similar institutions;

(3) With the help of ABS products, we had successfully carried out the first cooperation with several Chinese central state-owned enterprises, and had successively helped to issue accounts receivable ABS of ** capital supply chain, ** reverse factoring ABN of ** urban investment supply chain ABN and ** consolidated ABN of ** Grid. The above businesses were highly innovative and had distinct benchmarking significance in the market;

(4) June 2021 witnessed the issuance of China’s first batch of nine REITs projects at the same time. As a strategic investor, we deeply participated in the REITs project of Guangzhou ** Group Co., Ltd. (AAA state-owned enterprise) taking expressway assets and franchises as the underlying assets. This project was the only one in Guangzhou that had passed the defense of the National Development and Reform Commission and was publicly listed on Shenzhen Stock Exchange, ranking first in the country in terms of the scale of fundraising.

V. Industry status and qualifications

We are qualified as the lead underwriter of ABN （category B）on the interbank market, the lead underwriter of credit asset securitization, the lead underwriter of the financing plan for BFAE accounts receivable, as well as the joint seller of special plan ABS. The credit ABS project led by us was honored with the “Annual Excellence Award for Credit Asset Securitization Project” at the China Securitization Forum. Our ABS sales businesses cover interbank and exchange bond market. We are the fifth commercial bank in the whole market to carry out ABS joint sales business and the first in the rural commercial banking system, and are deeply engaged in the trillion size of ABS joint sales market.

(For details, please inquire at the nearby branch counters of Guangzhou Rural Commercial Bank or call our client service telephone 95313)