CDB to launch 8b yuan loan-backed securities
CDB, one of three policy lenders that support government-backed projects, is expected to issue the asset-backed securities (ABS) in the interbank market around November 20. The bond-like securities would mature in June 2017, the sources said.
China Development Bank plans to sell securities backed by an 8 billion yuan (HK$10.1 billion) loan to the state railway operator this month, sources with direct knowledge of the matter said yesterday.
Beijing announced in August that it would aggressively expand an ABS pilot programme.
Foreign banks have been invited to apply for permission to issue ABS for the first time since the pilot programme was launched in 2005.
Policymakers see securitisation as a tool to shift risk away from the banking system to reduce the chances of a financial crisis as economic growth slows and the level of bad loans rises.
According to the sources, China Credit Rating has given the railway ABS a rating of AAA, based on the credibility of the borrower, China Railway Corp.