July
21, 2021 – Sheng Ye Capital Limited (“SY Capital” or the “Company”, HKEx:
6069), a leading supply chain fintech platform, today announced that its
subsidiary, Wuxi Guojin Factoring Limited (“Guojin Factoring”), successfully
issued RMB 500 million of asset backed securities on the Shanghai Stock
Exchange. The program, backed by accounts receivable factoring assets, was
managed by Shanghai Guotai Junan Securities Asset Management Co., Ltd., and SY
Capital’s subsidiary,Sheng
Ye Information Technology Services (Shenzhen) Co., Limited (“SYIT”), will
provide end-to-end asset services and IT support for the program.
Guojin Factoring
was founded by SY Capital and Wuxi Communications Industry Group Co., Ltd
(“Wuxi Communications”) in June 2018, with a registered capital of RMB 300
million. As of June 2021, Guojin Factoring has provided accounts receivable
(“AR”)-based financing of more than RMB 6 billion to over 1,000 small, medium
and micro enterprises (SMEs). Focused on the transportation, infrastructure,
medical and pharmaceutical sectors, Guojin Factoring has provided supply chain
financing services to upstream and downstream partners of leading state-owned
enterprises, including China State Construction Engineering Corporation, China
Railway Engineering Corporation, Chongqing Pharmaceutical (Group) Co., Ltd. and
Wuxi Communications. Guojin Factoring is one of the five sponsors that
initiated the establishment of the Jiangsu Commercial Factoring Association in
May, 2021.
Unlike traditional
“1+N” factoring and ABS offerings, which focus on the underlying assets of one
enterprise, this ABS offering adopts an “N+N” approach, which encompasses the
underlying assets of many
different enterprises, and is further secured with multi-dimensional data
verification. This special program is an innovative ABS product dedicated to
support the development of SMEs. The ABS offering was rated senior AAA with a
coupon rate of only 3.6%, the lowest this year among all factoring ABS programs
of the same term in Jiangsu Province. This demonstrates the strong support of
this ABS program among institutional investors, and the value that SYIT has
created through its differentiated end-to-end asset management services.
