On May 10, Shanghai Chejia Financial Leasing Co. Ltd. (“Chejia”), a subsidiary of Cango Inc. (NYSE: CANG), successfully issued its first asset-backed medium-term note (ABN) in 2019, raising RMB189 million. This is the first ABN Chejia has issued, and also marked Cango’s first successful effort to vigorously diversify its financing instruments.
The ABN product marks the premiere of Chejia on the bond market, and represents a breakthrough into securitization for Cango Inc. The underlying asset linked to the security is Chejia’s claims to financial loans, as well as associated supplementary collaterals, undertaken by tenants through lease contracts with the company, which translates into ample and stable cash flow. The issue consists of prime and subprime asset-backed medium term notes. The size and composition of the issue are as follows: total value of prime notes is RMB 152 million, making up 80.42% of the issue, rated AAA by Lianhe Ratings; subprime notes RMB 37 million, 19.58% of total.
Chejia is an online financial services platform that focuses on automotive financing, providing a customized package of professional services to car buyers and riding-hailing drivers, spanning purchase guide, free car sourcing, purchase transaction as well as loan financing. Chejia also serves ride-hailing drivers with an integrated solution that includes automotive financing, vehicle supply, license compliance support, and fleet services.
As of 2018, Chejia has a presence in 40 cities and has expanded operations in seven key cities, boosting online ride hailing sales, and providing comprehensive solutions to Didi drivers including vehicle, financing, insurance, obtaining operating permits. In addition, Didi has provided to its users and drivers with car purchase intensions the access to Chejia services via its mobile app, thus providing Chejia with new car sales facilitation business development opportunities.
Founded in 2010 by a group of pioneers in China's automotive finance industry, Cango is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company's services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango is a leading automotive transaction service platform in China. Cango Inc. was listed on the New York Stock Exchange on July 26, 2018 (NYSE:CANG).