GMAC-SAIC Automotive Finance Co., General Motor's China auto financing unit, is rolling out an RMB 3 billion ($470 million) securitization of short-dated Chinese auto loans, according to Moody’s Investors Service.

The transaction, called Rongteng Individual Auto Mortgage Backed Securitization 2015-2, pool loans with a weighted average term of 2.3 years; the loans are seasoned, on average, by seven months.

All of the loans financed the purchase of new cars, both GM and non-GM brands. The loans have a minimum down payment of 20%, and the weighted average down-payment rate of the pool is about 33.79%. Borrowers that make down payments are less likely to default than borrowers who have no equity in their vehicles, according to Moody’s

All of the loans pay a floating rate of interest and are pegged to the People’s Bank of China 1 to 5 year benchmark lending rate.

Moody’s assigned preliminary ‘Aa3’ rating to the senior notes, which are supported by an unrated, RMB 300 million subordinate tranche. The notes have a weighted average maturity of August 2017.

CITC Securities, China CITIC Bank and Bank of China are the lead managers on the deal.

The issuer has originated four previous Chinese auto loan securitizations: Tongyuan 2008-1, Tongyuan 2012-1, Tongyuan 2014-1 and most recently Rongteng 2015-1, which closed in June 2015.

GMAC-SAIC was established on Aug. 18, 2004 as the first auto finance company in China approved by China Banking Regulatory Commission. It now manages RMB 35 billion.

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