China CITIC Bank Launches First Private Enterprise Anti-coronavirus Asset-backed Security


China CITIC Bank has issued a new asset-backed note (ABN) with the lowest coupon rate in a three year period, as part of efforts to mitigate the economic impacts of the novel coronavirus.

On 21 February China CITIC Bank’s Hangzhou branch issued 1 billion yuan in 2020 first tranche green disease prevention ABN for Hangzhou Youxing Keji Co., Ltd. (杭州优行科技有限公司).

The notes have a term of no more than two years and a coupon rate of 3.10%, marking the lowest rate for an ABN in China since 2017.

The ABN are reported to be the first issued in China on behalf of a private company for efforts to contain the impacts of the novel coronavirus outbreak.

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