On August 23, CFCA-ZGC Sci-tech Guarantee Innovation-based Enterprise Supply-chain Asset Backed Special Program No.1, Beijing’s first supply-chain ABS with external credit enhancement provided by a professional guarantee company, was issued successfully.

The ABS is rated AAA, with a total scale of 95 million yuan. ZGC Sci-tech Guarantee acted as its sponsor and credit enhancement agency, assuming the obligation of making up the difference, and provides guarantee for its core assets.

It is part of “CFCA-ZGC Sci-tech Guarantee Innovation-based Enterprise Supply-chain Asset Backed Special Programs No.1-9”. These series of programs are mainly targeted at emerging industries as well as the core firms in Beijing’s “high-tech and cutting-edge” sectors and their upstream suppliers, adopting the reverse supply chain ABS model with payable accounts as the underlying assets.

Based on the credit of the core enterprise, this ABS model provides financing services to its upstream suppliers that have stable and long-term business relationships with the core firm (including its subsidiaries).

This project obtained the Non-objection Letter from Shenzhen Stock Exchange on June 21, with the shelf registration scale no more than 1 billion yuan and the size of the first-phase ABS as 95 million yuan. It will support 19 small- and medium-sized suppliers of Andong Petroleum Technology (Group) Co., LTD.

ZGC Sci-tech Guarantee acted as its initiator and credit enhancement agency, Sinolink Securities Co., Ltd. the plan manager and sales agency, Beijing Zhongji Commercial Factoring Co., Ltd. the originator, Dongfang Jinchen International Credit Appraisal Co., Ltd. the rating agency, and Beijing Dacheng Law Firm the legal agent.