East & Concord Partners Assists the Offering of the First Shelf Financial Leasing Asset-backed Securities Product for Small and Micro Enterprises in China

It was reported by Shanghai Securities News on August 13 that the “Haitong Unitrust No. 1-5 Special Asset-backed Plan for Small and Micro Enterprises” obtained a no action letter issued by Shanghai Stock Exchange and became the first shelf financial leasing asset-backed securities product for small and micro enterprises in China. The successful launch of this project is another important measure of Shanghai Stock Exchange to assist small and micro enterprises and serve the real economy through asset-backed securities, which further enhances the role of finance in serving the real economy. Shelf offering can improve the efficiency and reduce the cost of offering, presenting a great exemplary feature and reproducibility. In addition, the special plan is characterized by multiple features such as highly dispersed asset pool, high-quality assets, reasonable and effective credit enhancement measures and relatively short term of securities. It is expected to receive attention from the capital markets.

The total issuance scale of this special plan is RMB 5 billion, the underlying assets are financial leasing bonds issued by Haitong Unitrust to small and micro enterprises. Haitong Unitrust International Leasing Co., Ltd. (“Haitong Unitrust”) will serve as  the original equity holder; Haitong Securities Co., Ltd. (“Haitong Securities”) the sales agency; Shanghai Haitong Securities Asset Management Co., Ltd the plan administrator; East & Concord Partners Shenzhen Office is responsible for the legal services of the special plan.

Partner Tao Wang, Associates Zhe Wang and Sulan Tang at East & Concord Partners provided full legal services for the project, including legal due diligence, transaction structure design, drafting and reviewing transaction documents including but not limited to the specification and standard articles of special asset-backed plan, custody agreement, agreement for the sale and purchase of assets, asset service agreement, subscription agreement and risk disclosure statement, and issuing legal opinions according to the requirements of Shanghai Stock Exchange.

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