The recent successful issuance of the "CITIC Trust Co., Ltd. 2026 First Phase Wuling No. 4 Targeted Asset-Backed Notes (REIT-like)" on the interbank bond market marks a significant step in green finance.
With Bohai Bank (HKEX: 09668) participating as an underwriter, the issuance reached a scale of 20 billion yuan, with the priority tranche achieving an interest rate of just 1.80%.
This project, backed by clean energy power plants as underlying assets, has garnered substantial market recognition through its innovative transaction structure designed to generate stable cash flows.
Driving Green Finance Forward
This initiative represents an innovative practice for Bohai Bank as it actively expands its asset securitization business and supports green energy enterprises in revitalizing their existing assets.
Real estate trust asset-backed notes, or REIT-like products, are securitization instruments issued by non-financial enterprises, using equity and debt of real estate project companies as their foundational assets.
These products transform real estate with stable cash flows into standardized financing tools, specifically supporting the revitalization of real estate assets aligned with major national strategies and policy directions.
As the asset securitization market continues to mature, REIT-like products have become a crucial pathway for companies to optimize their asset structures, improve turnover efficiency, and broaden financing channels.
This project closely aligns with the green and low-carbon development direction of the State Power Investment Corporation (SPIC), a major central state-owned enterprise in China's energy sector and the world's largest clean energy power generation company, with assets across solar, wind, nuclear, and hydropower.
Wuling Power, a key clean energy entity within the SPIC system, has extensive experience operating energy infrastructure, with a deep focus on hydropower and new energy.
Against the backdrop of energy companies accelerating their green transition and expanding new energy investments, the demand for long-term, low-cost, and diversified funding sources continues to rise.
Revitalizing mature assets through REIT-like structures can unlock the value tied up in high-quality real estate, providing capital for subsequent project investments and industrial upgrades, while offering capital markets a channel to share in the long-term, stable returns of green energy assets.
The priority tranche's issuance rate of 1.80% fully reflects the market's high confidence in the product structure and the quality of the underlying assets.
Enhancing Professional Capabilities
For Bohai Bank, participating in this underwriting represents an important step in enhancing its capacity for innovative financial services.
In recent years, the bank has continuously improved its spectrum of bond underwriting products, actively engaging in innovative businesses such as technology innovation bonds, green bonds, and asset-backed notes, thereby enriching its professional experience in serving the real economy.
Its involvement in this REIT-like underwriting will help the bank further enhance its ability to identify the value of high-quality underlying assets and expand its business scenarios in green finance and asset revitalization.
The successful execution of this project provides a replicable, innovative model for similar enterprises in structuring asset operations, capital recycling, green and low-carbon transformation, and industrial upgrading.
Bohai Bank fully leveraged its professional underwriting capabilities in the project, actively participating in registration and promotion to facilitate the smooth issuance of the product.
By precisely matching the financing needs of clean energy enterprises, the bank has channeled financial resources into the green and low-carbon sector, achieving an organic connection between financial innovation and real economic demand.
Moving forward, Bohai Bank will continue to focus on national strategies and client needs, concentrating on key areas such as green finance, asset securitization, and real estate revitalization.
The bank aims to persistently enhance its capabilities in innovative product services, actively participate in more exemplary direct financing projects, and contribute greater strength to serving the high-quality development of the real economy and advancing the practical implementation of key financial initiatives.
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