RMB 864 million! The nation’s first asset-backed security issuance for smart parking (on-street parking)

Release date:

2019-10-30 10:22

Source:

Parking Bang

On October 29, China’s first asset-securitization project in the smart parking industry—using temporarily occupied on-street parking spaces as the underlying assets—was launched: the “Chengdu Jiaotou Parking Fee Revenue Rights Asset-Backed Special Plan” (referred to as ABS). Its successful issuance on the Shanghai Stock Exchange marks Chengdu Jiaotou’s first-ever bond offering. The ABS project has officially been launched.

In active response to the reform and development guidelines of the Chengdu State-owned Assets Supervision and Administration Commission and Chengdu Jiaotou, and to facilitate strategic investment in the parking industry as well as project financing, Smart Parking Company has proactively explored innovative direct financing approaches. Ultimately, with Smart Parking serving as the original rights holder, the company has structured a future on‑street parking fee‑collection revenue model and conducted asset‑backed securitization by aligning principal‑and‑interest cash flows, thereby maximizing the financing scale and extending the financing term to… In 2009, the full potential of parking‑fee revenue as a high‑quality asset was realized.

The issuance size of this asset-backed securities product by the smart parking company is RMB 864 million, with a debt rating of AAA. Upon launch, the product received broad recognition and strong subscription from numerous banking institutions, achieving an overall oversubscription ratio of 2.75 times. Ultimately, the product’s coupon rate set a new record low for nine-year asset-backed securities issued in 2019.

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