Xingyuan 2017 Phase 1 Residential Mortgage-backed Security Issuance recognized as China Top 20 Credit Asset Securitization Projects

China Business Law Journal recently announced its selection of "China's Top 20 Credit Asset Securitization Projects" and "China's Top 20 Corporate Asset Securitization Projects" in its March 2018 issue. "Xingyuan 2017 Phase 1 Residential Mortgage-backed Security Issuance" ("Xingyuan Security"), advised by a Dentons Beijing team, was recognized as one of "China's Top 20 Credit Asset Securitization Projects".

Xingyuan Security is the first residential mortgage-backed security publicly issued by the Industrial Bank Co., Ltd. The underlying asset for this security is the bank's residential mortgage loans, and the product is divided into three tranches: Senior A1, Senior A2 and Subordinate (RMB 5.13 billion, RMB 6.84 billion and RMB 1.696 billion respectively). The final issuance rates for Senior A1 and Senior A2 are 4.80% and 4.95% respectively, thus the securities were successfully issued at a relatively low interest rate. The product is also a residential mortgage-backed security with the biggest issuing size on the market so far.

This deal is advised by senior partner Liu Haiping, senior counsel Liu Fei, and associates Han Tao and Chen Xiaorong.