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CALC announces financing deal in Shanghai
February 2nd 2018
China Aircraft Leasing Group Holdings (CALC) this week listed “Huatai Securities Asset Management – CALC Phase I Asset-backed Securities Program” on the Shanghai Stock Exchange; China’s first fixed-income product denominated in a foreign currency. Read More »
CALC said the greenback-denominated asset-backed securities (ABS), totalling US$171 million, are structured in eight tranches, with the longest product maturity period of 7.65 years. All tranches are rated AAA by China Cheng Xin International.
The Hong Kong-headquartered leasing firm said the move would mitigate currency exchange loss risks, given that the vast majority of aircraft purchases are transacted in US$.
CALC further noted the ABS would hold significance in attracting US$ investment in the Mainland and in reducing US$ outflows.
“As China’s first ABS denominated and settled in a foreign currency, and the first ABS in aircraft leasing in the open market, this ABS sets a precedent for major financial innovation, marking a milestone for both the aircraft leasing industry and the development of China’s asset securitization,” said CALC CEO, Mike Poon.
