DeHeng Advised CREC Subsidiaries on Obtaining the Letter of 

No Objection for Supply-chain Financial Assets Securitization

2019-1-05

On November 20, 2018, BOC International (China) Co., Ltd. received from Shanghai Stock Exchange the Letter of No Objection Regarding the Transfer of Asset-Backed Securities of the BOC International-China Railway Commercial Factoring 1-20 Asset-Backed Securities Scheme. The original equity owners of this Scheme are China Railway Commercial Factoring Co., Ltd. and China Railway Capital Financing Leasing Co., Ltd..The offering will consist of no more than 20 tranches to raise no more than 10 billion Yuan.

China Railway Commercial Factoring is a joint venture between China Railway Capital Co., Ltd. and China Railway Tunnel Group (CRTG), both under China Railway Group Limited (CREC), with registered capital of one billion Yuan. On top of CREC's industrial strength, it follows the strategic requirement for industry-finance integration and aims to provide one-stop supply-chain financial solutions for other CREC subsidiaries and for upstream and downstream companies along the supply chain of the construction industry.

This is the first shelf offering of asset-backed securities by China Railway Commercial Factoring. Lawyers of DeHeng Beijing Office Tan Kunlun, Qi Xin and Ma Quan  provided legal services for the entire project, including the designing and demonstration of the deal structure, due diligence on basic assets, the drafting and revision of relevant documents and the provision of final legal opinions. DeHeng lawyers worked closely with the issuer and other intermediary agencies involved, took into full account the respective characteristics of basic assets for follow-up sale, designed the deal structure and provisions accordingly, and won the recognition of the client and other intermediary agencies. DeHeng lawyers will provide ongoing legal services for subsequent issues of the Scheme.