North China state-owned leasing firm's ABS issuance hits record-low rate of 1.83%

(ECNS) -- A state-owned leasing firm in Tianjin, a major port city in north China about 130 kilometers southeast of Beijing, has just completed its first asset-backed securities (ABS) issuance at a record-low rate for the region.

Tianjin Binhai New Area Technology Finance Leasing Co. issued the notes under a 1.5-billion-yuan (about $221.4 million) shelf-registration program that had received a no-objection letter from the Shanghai Stock Exchange.

The senior tranche was priced at 1.83% and the second tranche at 1.99%, the lowest rates ever for a Tianjin state-owned ABS. 

The product drew strong investor demand, reflecting growing market confidence in the city's state-owned sector reforms and asset quality, analysts said.

The issuance marks a milestone for Tianjin's state-owned firms in tapping direct financing through the capital market, the company said, adding that local financial regulators provided support throughout the process.

(By Helen Mo, intern Li Chengzhan)