ICBC set for ABS offering
Updated: 2007-09-25 10:17
The Industrial and Commercial Bank of China (ICBC) will sell 4 billion yuan (US$532 million) worth of asset-backed securities (ABS) on the interbank bond market, a first for the Beijing-based lender.
The financial offerings are based on the securitization of the ICBC's well-performing corporate loans from four of its branches, Guangdong, Shandong, Zhejiang and Ningbo, the bank said yesterday in Beijing, adding that 4 billion yuan of the offerings are rated as senior bonds, of which 82 percent are AAA rated.
China's fledgling securitization market is currently worth 17 billion yuan; six financial institutions have been allowed to make such issues.
The country first launched ABS products by China Development Bank and mortgage-backed securities by China Construction Bank at the end of 2005.
"The ongoing subprime credit crisis in the United States and Europe will not affect China's securitization market. Securitization is still an important innovation tool for domestic commercial banks," said Shen Bingxi, deputy director of the central bank's financial market department.
Yang Kaisheng, ICBC president, said that he is confident on selling the products even though the booming mainland stock market has distracted investors' interest from fixed-income products.
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