Bank of Communications (BOCOM; 601328.SH; 03328.HK) has floated its first batch of credit card asset-backed securities after the central bank allowed registration-based issuance of credit asset-backed securities earlier this year.
BOCOM announced Wednesday the issuance of 5.022 billion yuan of preferred A class and B class credit card asset-backed securities amid 3.23 times and 3.91 times of subscription, which helped price the couple products to yield as low as 3.4 percent and 4.0 percent respectively.
BOCOM, the fifth largest bank in China, has registered with Chinese regulators 50 billion yuan quota of credit card asset-backed securities. As the provider of underlying assets, the credit center of BOCOM has 42 million credit cards in circulation with 100 billion yuan of consumption per month.
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