Crédit Agricole CIB completes its debut asset-backed notes transaction in mainland China

Client successes

This is yet another testament to not only our leading market expertise but also our commitment to China.

Crédit Agricole CIB has closed its first Asset-Backed Notes (ABN) transaction in mainland China, issued for Volvo Car Group Financial Leasing Shanghai Co., Ltd (VCFL). Priced on 10 May, this dual-tranche transaction includes a CNY 500 million note priced at 2.63% and a CNY 600 million note priced at 2.95%. Compared to VCFL’s first ABN issuance in December 2023 priced at 3.63%, our debut ABN has substantially brought down the client’s cost of funding by 100 basis points.

Established in 2019 and owned by Volvo Car Corporation, VCFL offers a comprehensive range of financial leasing products for Volvo models, supporting both individual and corporate customers in purchasing Volvo cars.

This seminal, landmark transaction marks Crédit Agricole CIB’s first foray into the Chinese ABN market, following the acquisition and subsequent upgrade of the license awarded to the Bank by Chinese regulators.

In June 2020, Crédit Agricole CIB China was granted a Junior Corporate Bond Underwriting Licence from China’s National Association of Financial Market Institutional Investors (NAFMII), which has enabled us to carry out underwriting business of debt financing instruments of non-financial enterprises. 

Since then, we have supported 15 bond/Asset-Backed Securities issues for our clients in mainland China, and our efforts to grow Crédit Agricole CIB’s market share in the onshore China market have continued and borne fruit — earlier in January 2024, Crédit Agricole CIB China received the Most Senior Licence from NAFMII to underwrite corporate debt financing instruments in the onshore interbank market. Being one of the few international banks to receive the upgraded licence to the most senior class of lead underwriter by NAFMII, the Bank is better-positioned than ever to support our clients in investing in the country’s bond market.

“We are very pleased with the successful closing of our first ABN transaction, which represents another milestone following our NAFMII licence upgrade in January. Teams across the bank will leverage their origination capability and distribution network to bring more transactions to the market and help our clients expand funding channels.”

Alan Roch

Head of Credit for Asia-Pacific

“This issuance not only marks our first partnership with VCFL but also strengthens our relationship with Volvo at the group level. The successful closing of our first ABN deal in mainland China opens the door to new opportunities for underwriting and distributing substantial notes for various corporates, thereby expanding our client base in the country.”

Dickson Mo

Director, MNC China

Client successes

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