China Development Bank, a state-owned policy lender that funds public works, is set to sell RMB5.3 billion of asset-backed securities in the first such sale in China, Bloomberg reported, citing documents distributed to investors. The assets backing the bonds comprise 62 loans covering 12 industries, including power generation, telecommunications and public facilities. China Development Bank said it would issue a second batch of RMB4.7 billion of asset-backed securities in the near future. As Beijing wants to further develop the bond market to reduce companies' dependence on bank loans, Wang Yanqing, director of the China Banking Regulatory Commission, called CDB's offering "a significant innovation in China's financial industry".
Categories