Industrial Bank of China has closed its Rmb820 million (US$99 million) securitization of non-performing loans. Credit Suisse First Boston arranged the deal, backed by an asset pool with a face value of Rmb2.6 billion, while Citic Securities led the sale of trust certificates to investors.
The deal offered a Rmb200 million piece with a one-year average life, and a Rmb400 million subordinated piece with expected average life of under three years. Both were rated triple-A by local agencies. In addition, the deal was structured with a Rmb220 million first-loss tranche, to be retained by ICBC.