Shuntai Leasing issues RMB137.05m household photovoltaic asset-backed securities

On September 27th, a program of household photovoltaic asset-backed securities was successfully issued with a total issue size of 137.05 million yuan, with Shuntai Leasing as the originator and Industrial Securities as the scheme manager.

On September 27th, a program of household photovoltaic asset-backed securities was successfully issued with a total issue size of 137.05 million yuan, with Shuntai Leasing as the originator and Industrial Securities as the scheme manager.

It is called Xingye Yuanrong-Shuntai Leasing Farmer-Benefiting Green Asset-backed Special Plan.

This issuance will reduce the financial burdens on farmers due to the purchase of photovoltaic power generators, and promote the popularization of green photoelectric facilities in the vast rural areas of the country, and support the strategy of rural revitalization.

The issuance is based on the household photovoltaic assets of Shuntai Leasing’s standardized product Tianshunbao, which combines distributed household photovoltaic power generation facilities in rural areas with financial leasing business, providing farmers with green power generation facilities.

It meets farmers’ daily production and household electricity consumption, but also obtain income through sales of electricity to cover the rent of the facilities.

The total size of the issuance is 137.05 million yuan, including 80 million yuan for priority A, with a coupon rate of 4.9%, 36 million yuan for priority B, with a coupon rate of 5.2%, and 21.05 million yuan for secondary offering.

This not only solves the financing problem of Shuntai Leasing’s household photovoltaic projects, but also provides a strong guarantee for the development of household photovoltaic business, and further enhances the professionalism and industry influence of Shuntai Leasing.

Financial services is one of the core business sectors of Changzhou High-tech Group. Shuntai Leasing is a subsidiary of Jinlong Holdings, a subsidiary of Changzhou Hi-tech Group.

Shuntai Leasing workedwith Trina Solar and other enterprises in 2017 to launch “Tianshunbao” to explore household photovoltaic use in vast rural areas.

With the development of the projects, the market is increasingly growing. In order to solve the problem of insufficient supply of its own funds, Shuntai Leasing began to look for a financing model.

In 2018, Shuntai Leasing visited and examined a number of well-known securities firms and banks across the country, and the project was appraised by these firms because of its sustainable and stable cash flow.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/07/shuntai-leasing-issues-rmb137-05m-household-photovoltaic-asset-backed-securities/.

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