CALC Receives Shanghai Stock Exchange’s Approval for a RMB5 Billion ABS Programme First in China:
An ABS Programme for Aircraft Leasing that Allows Multiple Issuances with a Single Approval
22 Jun 2020
Hong Kong, 22 June 2020 - China Aircraft Leasing Group Holdings Limited ("CALC" or the “Company”, HKSE stock code: 01848), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce that it has received an approval from the Shanghai Stock Exchange (“SHSE”) for its asset-backed securities issuance programme (“ABS Programme”) with a ceiling of RMB5 billion. Such ABS programme for the aircraft leasing industry is a first of its kind in China, demonstrating in full SHSE’s support for the aviation industry. The approval has been granted against the backdrop of steady recovery of the aviation industry and numerous national policy initiatives in favor of the civil aviation sector. This is also another achievement of CALC’s continued effort in pursing innovation in China’s aviation financing industry.
An ABS programme allows multiple issuances with a single approval. It simplifies the approval process, enhances flexibility for the timing for issuance, helping the issuer to capture new business opportunities at the right time while lowering its related costs. ABS programmes prevailing in the market are mostly backed by high-quality, low-risk underlying assets that are highly standardized and with significant scales. CALC’s fleet comprises mainly of narrow-body aircraft that are highly liquid. Majority of its airline customers are carriers with strong fundamentals. Such quality underlying assets allow it to be qualified for the ABS programmes.
This is CALC’s second innovative product cleared by SHSE. In 2018, CALC launched China’s first foreign currency denominated asset securitization product and the first aircraft leasing ABS issued in the public market which was successfully listed on SHSE. This had filled the void in the domestic market for foreign currency denominated, foreign currency settled ABS products, creating a new asset-light financing model.
Mr. Mike Poon, Chief Executive Officer of CALC, said, “The receipt of this approval underlines the recognition from the national regulatory authorities. This has instilled great confidence for us to accelerate our pace of development. We endeavor to grasp this opportunity to continue in pursuing development in the aviation financing industry.”
Ms Winne Liu, Deputy CEO and Chief Commercial Officer of CALC, said, “We would like to extend our gratitude to the support in all aspects from the regulatory authorities and professional intermediaries. We are committed to providing investors with high-quality, stable return underlying assets, seeking to enrich our product line and provide investors with more diversified investment choices.”