CBHB (ASX: 09668) has achieved another success in revitalizing financial leasing assets. Recently, acting as the lead underwriter, the bank successfully registered and issued the 2026 First Phase Directed Asset-Backed Commercial Paper (ABCP) for Lionbridge Financial Leasing (Shanghai) Co., Ltd. The issuance size was 307 million yuan with a coupon rate of 1.8% and a senior product tenor of just 184 days. This marks another significant practice by CBHB in leveraging innovative financial instruments to serve the real economy and support the high-quality development of Tianjin's leasing industry.
Asset-Backed Commercial Paper (ABCP) is an innovative product launched by the National Association of Financial Market Institutional Investors within the Asset-Backed Notes (ABN) framework. Its core mechanism involves "short tenor, rolling issuance, and revolving financing." Companies package their existing assets, such as lease receivables, into a pool and issue short-term securities to recoup funds. Upon maturity, the financing can be rolled over through a new issuance or asset repayments. This structure effectively addresses the maturity mismatch issue of "long assets, short liabilities" common in financial leasing companies, significantly lowering their overall financing costs.
The originator of this issuance, Lionbridge Financial Leasing (Shanghai) Co., Ltd., is a leading independent third-party commercial vehicle financial leasing company in China. It has deep expertise in the logistics and transportation vehicle leasing sector, characterized by heavy assets and a strong need for low-cost financing. The underlying assets consist of 2,844 vehicle lease receivables from 1,756 lessees. CBHB precisely utilized the features of the ABCP product to transform traditional long-term asset-backed notes into a short-term 184-day product. This not only reduced the enterprise's financing costs but also aligned with investors' preference for short-term investments.
The bank provided full-process lead underwriting services, including registration, filing, and issuance, and further assisted the company in optimizing the deal structure and broadening financing channels. The successful execution of this project exemplifies CBHB's long-term, deep-rooted involvement in the financial leasing industry. As the only national joint-stock commercial bank headquartered in Tianjin, CBHB has in recent years rolled out comprehensive financial solutions for the leasing sector. These include innovative products like Asset-Backed Notes (ABN) and ABCP, supporting multiple rolling issuances under the same asset pool, and customizing themed bonds for green leasing scenarios such as wind and solar power, aiding leasing companies in their green transition.
Currently, Tianjin is committed to building a world-class national demonstration zone for leasing innovation. According to the "Implementation Plan for Tianjin to Build a World-Class National Leasing Innovation Demonstration Zone to Better Serve High-Quality Development of the Real Economy (2026-2030)" issued by the Tianjin Municipal Financial Office, systematic arrangements and innovative measures to promote the high-quality growth of the leasing industry have been clearly outlined. To effectively implement Tianjin's strategy for high-quality development of the leasing industry, CBHB has continuously increased its bond underwriting efforts for Tianjin-based leasing enterprises. It positions bond underwriting as the main channel for providing funding across the entire "finance-leasing-manufacturing" chain. The raised funds are targeted at Tianjin's "1+3+4" modern industrial system, guiding financial resources towards the leasing industry and further channeling them to meet the financing needs of the real economy.
It is reported that as of the end of May 2026, the bank has underwritten and issued 19 tranches of bonds for Tianjin-based leasing enterprises, with a total underwriting scale nearing 20 billion yuan. Its market share remains firmly at the forefront, and its business volume has reached a record high. CBHB's lead underwriting of this Lionbridge Leasing ABCP project has not only injected low-cost funding into the commercial vehicle financial leasing sector but also provided replicable experience for the leasing industry to achieve cost reduction and efficiency improvement through asset securitization. The bank stated that it will continue to leverage its strengths in bond underwriting, smooth financing channels for equipment renewal and technological upgrades of real-economy enterprises, deepen the synergy between finance and real industries, and support the scaled and high-quality development of the financial leasing industry.
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