HSBC has completed the first securitisation for Industrial and Commercial Bank of China (ICBC), the largest commercial bank in China, despite market volatility.

The transaction is worth Rmb4.021bn (US$531mn), and HSBC acted as a project advisor on the deal.

The multiple-class transaction was arranged under China’s securitisation regulatory regime, and is made up of a combination of scheduled amortisation and pass-through tranches to meet the different requirements of domestic investors in China’s capital markets.
“All classes were substantially oversubscribed within an hour of bookbuilding, reflecting the superior structure and credit quality. The transaction highlights the continued liquidity and resilience of China’s capital markets in the face of challenging market conditions in international capital markets,” remarks William Ross, managing director, head of asset-backed securities and structured bonds, Asia-Pacific.

Due to high demand, a significant percentage of the unrated first-loss class was pre-placed with third party investors.