DeHeng Assisted Guangzhou Rapid Transit Construction Co., Ltd. with ABS Issuance

2024-06-25

On June 19, 2024, Guangzhou Rapid Transit Construction Co., Ltd., as the originator, issued the Ping An-Guangzhou Communications Investment Group Airport Expressway No. 1 Asset-Backed Securities (ABS) on the Shenzhen Stock Exchange.

The project’s shelf registration totaled RMB 3.475 billion, with the first tranche amounting to RMB 1.895 billion. This included RMB 1.77 billion of Class A senior securities rated AAA with an issuance rate of 2.34%, RMB 30 million of Class B senior securities, and RMB 95 million of subordinated securities. Guangzhou Communications Investment Group Co., Ltd. served as the credit enhancement agency, with Ping An Securities as the project manager and lead underwriter. Other underwriters included GF Securities, China Securities, Wanlian Securities, and Dongxing Securities.

As the legal advisor for this project, the DeHeng team, led by partners Qi Xin and Yan Min, with primary support from lawyers Ma Sitao and Liu Anguo and trainee lawyer Qiao Fei, provided professional and efficient legal services in underlying asset verification, transaction structuring, drafting of transaction documents, legal opinions, and general legal consultation.