Shandong’s Hengfeng Bank has debuted China’s first decentralised, multi-format commercial mortgage-backed securities (CMBS) in the Sichuan province capital of Chengdu.
The CMBS issue raised a total of 1.31 billion yuan (approx. USD$201.95 million) for regional property developer Chengdu Xingcheng Group (成都兴城投资集团有限公司).
The instruments have a maturity of 18 years and a AAA credit rating.
The Chengdu branch of Hengfeng Bank first approached state-owned Chengdu Xingcheng Group five months ago with a proposal to use CMBS to expand its financing channels.
Chengdu Xingcheng Group was ranked 308 out of China’s top 500 enterprises for 2020, and bills itself as a “state-owned capital investment operator” and “internationalised comprehensive urban development operator.”
Hengfeng Bank said that in future it will “continue to use diversified financial products including CMBS, corporate bond support investment and collective trusts for the targeted provision of comprehensive financial solution plans to enterprises.”