On 30 March 2026, the board of SANY Heavy Industry Co., Ltd. approved a plan for its 94.86%-owned subsidiary, SANY Financial Leasing Co., Ltd., to establish a special purpose plan and register asset-backed securities (ABS) with a shelf size not exceeding RMB9.00 billion.
The proposed ABS will be backed by financing-lease receivables generated by SANY Financial Leasing. Issuance may occur in one or multiple tranches over two years, with up to RMB1.00 billion available for revolving structures. Each tranche will comprise senior and subordinated notes, with the subordinated portion set at no less than 5%.
SANY Group Co., Ltd.—the controlling shareholder of SANY Heavy Industry holding 31.04% of its shares—intends to subscribe for all subordinated ABS, up to RMB1.00 billion. SANY Heavy Industry will act as Liquidity Deficiency Payment Obligor, covering any shortfall in taxes, senior note interest or principal during the life of the plan.
CITIC Securities, Huatai Securities (Shanghai) Asset Management, China International Capital Corporation and Ping An Securities are mandated as plan managers.
Financial profile of the originator: • As at 31 December 2024, SANY Financial Leasing reported total assets of RMB5.83 billion, net assets of RMB1.53 billion, revenue of RMB342.80 million and net profit of RMB195.34 million. • As at 30 September 2025, unaudited total assets stood at RMB5.03 billion, net assets at RMB1.69 billion, revenue at RMB234.90 million and net profit at RMB151.55 million.
Connected-transaction status: Because SANY Group will acquire the entire subordinated tranche, the deal constitutes a connected transaction under Shanghai and Hong Kong listing rules and requires shareholder approval. The board has endorsed the proposal; interested directors abstained from voting.
Purpose and impact: Management expects the securitisation to expand funding channels, recycle on-balance-sheet assets and enhance capital efficiency at SANY Financial Leasing. The transaction is not deemed a major asset restructuring.
Next steps: The proposal will be tabled at the forthcoming general meeting. Establishment of the special purpose plan and ABS issuance remain subject to regulatory filings and shareholder consent. Investors are advised to exercise caution when dealing in SANY Heavy Industry securities until further announcements are made.
Comments