CALC’s Huatai Securities Asset Management – CALC Phase I Asset-backed Securities Program – China’s first asset-backed security (ABS) denominated and settled in a foreign currency, US dollars, and the first ABS in aircraft leasing in the public placement market, has successfully listed on the Shanghai Stock Exchange.
China Asset Leasing Company, a company registered in Tianjin by CALC, is the issuer of this ABS, which owns the aircraft as its underlying assets, while Huatai Securities (Shanghai) Asset Management, is the manager for this ABS program.
CALC says that this ABS product adds diversity to the types of financial products available in China, fills the void of ABS products denominated and settled in foreign currency, and provides an important investing and hedging tool for domestic investors.
In a statement, the lessor also highlighted the significance of the deal for attracting US dollar investment in mainland China and in reducing outflows of US dollar-capital.
This ABS is considered to be part of CALC and Huatai Securities Asset Management’s active role in executing the "One Belt One Road" (OBOR) strategy.
“We are excited about the listing of the asset-backed security (ABS) launched by Huatai Securities Asset Management and CALC on the Shanghai Stock Exchange today,” said Mike Poon, Chief Executive Officer of CALC. “As China’s first ABS denominated and settled in a foreign currency, and the first ABS in aircraft leasing in the open market, this ABS sets a precedent for major financial innovation, marking a milestone for both the aircraft leasing industry and the development of China’s asset securitization. Currently, CALC is striving to solidify its strategic position as an aircraft full life-cycle solutions provider, supported by its strong order book, diversified portfolio of products and services and global footprint. CALC will continue to leverage its expertise to support the development of the Aviation Silk Road as part of China’s ‘One Belt One Road’ Initiative.”
As of the ABS listing day on 30 January 2018, CALC has a fleet of 110 aircraft.