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AwardsChina Securitization Awards

Best securitization deal 2021

China Three Gorges Renewables (Group) Co 2021-1 Green Asset-backed Notes (Carbon Neutrality)

Many ABS deals in China caught Asiamoney’s attention this year, whether from new issuers and asset classes or because they came with structural innovations.

But what Asiamoney found the most impressive was the collective effort from the onshore ABS market – as well as the broader Chinese bond market – to support the transition to a green and low-carbon economy. Beijing set a target in September 2020 to reach peak carbon emissions by 2030 and become carbon neutral by 2060.

While corporate issuers have continued to sell green transactions in the exchange ABS market, the interbank credit ABS market has also welcomed many names. These include debut green auto loan ABS deals from BYD Auto Finance Co and Shanghai Automotive Group Finance Co, and Industrial and Commercial Bank of China’s green credit card ABS that was backed by new energy vehicles.

But front and centre of the green renaissance was China Three Gorges Renewables (Group) Co’s Rmb1.115 billion ($175 million) asset-backed notes (ABN). The order book for the green deal was close to 1.8