DEALS
Zhong Lun Advises on 2nd Asset Backed Securitization Project of Far Eastern Leasing
Zhong Lun Advises on 2nd Asset Backed Securitization Project of Far Eastern Leasing
Recently, Second Far Eastern Specific Asset Management Plan (i.e. the 2nd Asset Backed Securitization Project of Far Eastern Leasing) was successfully established, raising capital of RMB 1,278,873,800. The plan issued the priority beneficiary certificates at a total amount of RMB 1,089,000,000 and the subordinated beneficiary certificates at a total amount of RMB 189,873,800. The priority beneficiary certificates are divided into 5 types, including priority beneficiary certificates 01~05, all of which are rated AAA and can be traded through the block trading system of Shanghai Stock Exchange.
This plan is the first successful specific asset management plan since the restart of Asset Backed Securitization Pilot under the supervision of CSRC. It has learned from mature experience of Credit Assets Securitization in risk isolation, cash flow design, and account settings. Compared to the 1st round of Asset Backed Securitization Pilot, it presents much innovation.
International Far Eastern Leasing Co., Ltd (“Far Eastern Leasing") is the originator of the underlying assets, referring to the rights under lease contracts and the subsidiary guarantee rights and interests, and CITIC Securities Company Limited (“CITIC Securities") is the plan administrator. In this plan, CITIC Securities issued qualified institute investors the asset backed beneficiary certificates, and purchased from Far Eastern Leasing the underlying assets, from which the cash flow is used to pay the principal and proceeds of the certificates.
Zhong Lun Law firm acted as the sole legal counsel for the plan and provided legal service from October 2009 to August 2011. The professional team included Borong Liu and Wei Kong, partners from Zhong Lun Law Firm, and associates Xiaoli Liu, Wei Xu, Yuan Chen and Xiaojie Wang
