(Yicai Global) Aug. 24 -- China's Bond Connect program, the rapidly growing exchange connecting the Hong Kong, Shanghai and Shenzhen bond markets, has seen its first asset-backed securities transaction take place.
Standard Chartered Bank China Ltd. played co-lead underwriter to allow Ford Automotive Finance China Ltd. to issue its seventh car loan asset-backed security, which was the first to be issued through the north-bound Bond Connect in the interbank market. The total value of securities issued was almost CNY3.77 billion (USD566 million).
Domestic and international investors were both keep to get their hands on the priority bonds, which were issued at final rates of 4.65 percent for Class A and 4.95 percent for Class B, 30 basis points and 60 basis points higher than the central bank's one-year benchmark lending rate.
Standard Chartered Bank Hong Kong Ltd. also invested in the securities through the northbound Bond Connect.
"Standard Chartered helped Ford Financial issue its first ABS via through the Bond Connect program," said Yang Jing, general manager of Standard Chartered China's financial markets. "The program not only provides an advantageous financing channel for customers, but broadens the areas where foreign investors can conveniently participate in the Chinese interbank bond market."
China officially approved the Bond Connect program on July 2, and the northbound phase had a trial run on July 3.