Most innovative firm 2018
China International Capital Corp
As China’s securitization market expands, it also grows in complexity. Originators now demand tailor-made client solutions and structural innovations. CICC, more than any other firm, has answered this call.
It has been at the forefront of the market’s development. In the credit ABS market, it acted as a joint lead underwriter on the crucial deals of the year: the first Bond Connect RMBS, China Construction Bank’s Jianyuan 2018-2, and the same originator’s Jianyuan 2018-11, the first Chinese RMBS transaction that not only received a triple-A international rating but also saw the class A1 tranche fully placed among global investors through Bond Connect. It introduced the only international account that participated in Jianyuan 2018-2.
In corporate ABS and ABN, the brokerage had even more to offer when it came to bringing innovative products to the market. CICC helped structure the first pre-ABS for Far East Horizon, and was the joint underwriter and the Bond Connect financial adviser for Bank of Communications’ Rmb16.95 billion ($2.45 billion) Jiaoyuan 2018-1 credit card instalment ABS. The latter was not only the first deal of its kind to have included foreign investors through Bond Connect, but also the largest single-issue credit ABS ever sold in China.
BoCom’s Rmb9.31 billion Jiaoying 2018-1 RMBS, the first RMBS based on the use of blockchain technology, saw CICC acting as the lead underwriter and a bookrunner.
The firm also managed an ABN backed by receivables from credit card instalments for Vipshop, the online shopping website listed on the New York Stock Exchange, marking the first deal of its kind in China; the first Belt and Road ABN shelf, which started with the Rmb2.5 billion CICC-Far East Leasing 2018-1; and a number of transactions for Ant Financial backed by the debt and receivables of its online microloan services, Huabei.
CICC also helped to develop ABS products for new-economy enterprises, including CICC-UCAR auto receivables ABS phase I for UCAR, a Rmb454 million transaction where CICC was the lead. The firm was involved in all stages of the transaction from assets selection, structural design, rating communication, to investor roadshows and deal execution.
While regulatory approvals can take many months from the application date, CICC was able to help the originator get the go-ahead from Shenzhen Stock Exchange in just two weeks. The transaction was also the first O2O auto e-commerce platform ABS product China has ever seen.