Monday, November 24, 2008

CMB completes issuance of RMB 4.092 bln ABS

China Merchants Bank (CMB)<600036><3968>, the nation's fifth-largest bank by market value, announced that it has completed issuance of RMB 4.092 billion credit asset-backed securities (ABS) by the end of October.

CMB said in a statement that the ABS issuance will help lower risks and boost liquidity. The first batch of the ABS offered by CMB targeted at borrowers from 21 industries, including railway transportation, port, nonferrous metal and real estate, sources reported.

According to the statement, the portfolio has an average weighted credit rating of AA-/A+.

The Chinese lender's ABS program has been postponed several times by the country's regulators as the watchdogs remain cautious amid the global financial crisis partly triggered by inadequate regulation of credit asset-backed securitization.

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