Changhong Successfully Issues Its First ¡°Asset Backed Special Plan¡± of Household Appliance Manufacturing Industry
2017-11-27

(Mianyang News) The ¡°Attracting Investment and Innovating Financing£­the Receivable Asset Backed Special Plan of Sichuan Changhong¡± jointly dominated by Merchants Securities and Chonghong was issued successfully a few days ago and is planning to be listed in Shanghai Stock Exchange for transfer recently. According to a relevant director from Changhong, this is the first asset backed securities (ABS) of household appliance manufacturing industry as well as the first receivable ABS of Sichuan province. Its successful issue marks Changhong¡¯s major breakthrough in household appliance manufacturing industry and asset securitization sector of Sichuan.

It¡¯s known that the issuing scale of Changhong receivable asset backed special plan reaches 1.055 billion yuan, among which the scale of senior A-level securities (the debt rating is AAA) amounts to 581.41 million yuan, that of senior B-level securities (the debt rating is AA+) registers 68.36 million yuan, that of senior C-level securities (the debt rating is AA) reaches 352.48 billion yuan and that of junior securities is 52.75 million yuan. Facing multiple disadvantages, including overall tight budge and increasing interest rate, Changhong and Merchants Securities have pulled together and coordinated many investment organizations to greatly lower the issue cost through hierarchical structured design. The issue of Changhong¡¯s receivable ABS has liquidized remnant assets, created new financing channels for the enterprise and strongly supported the operation and strategic development of the enterprise.

After years of industrial distribution and transformation development, Changhong has preliminarily established the industrial system of information household appliances plus services and enjoyed favorable industrial base and comprehensive competitive ability. Changhong has long been actively expanding financing channels, liquidizing remnant assets, lowering financing cost and adjusting liability composition by using innovative financial products while making full use of traditional financing tools. After Changhong Group, the controlling shareholder of Sichuan Changhong, successfully issued non-public 3 billion corporation bonds in 2016, Changhong again successfully issued the first asset backed special plan of household appliance manufacturing industry this time. Meanwhile, two projects whose bonds can be exchanged into corporate stocks, one is Sichuan Changhong stock held by Changhong Group and the other is Meiling Electronics stock held by Sichuan Changhong, have been submitted to the exchange for check; the short-term financing bill of military-civilian integration of Changhong Group has been submitted to the association of securities dealers for check and the ¡°green bond¡± and ¡°foreign perpetual bond¡± are being demonstrated and advanced.

The proactive exploration of Changhong in innovative financial products plays an exemplary and leading role in helping state-owned enterprises apply innovative financial products flexibly. The innovative financing has helped optimize the enterprise capital structure and improve the operation capability of the enterprise. (Wang Qing, an all-media reporter from Mianyang Daily)