CEB GREENTECH (01257) plans to issue 700 million yuan worth of asset-backed securities.

CEB GREENTECH (01257) announced that the Companys wholly-owned subsidiary, Guangda Green Environmental Management Shenzhen, intends to act as the originating equity holder, intending to transfer underlying assets to Asset Support Special Plan-2 initiated and established by PU Yin Ansheng Asset Management on the Shenzhen Stock Exchange. As a result, the second phase of asset-backed securities will be issued to qualified institutional investors in China by Asset Support Special Plan-2 managed by PU Yin Ansheng Asset Management. With regard to the proposed issuance of the second phase of asset-backed securities, Guangda Green Environmental Management Shenzhen (as the seller and originating equity holder) and PU Yin Ansheng Asset Management (as the buyer acting on behalf of Asset Support Special Plan-2) will enter into a basic asset purchase agreement, under which Guangda Green Environmental Management Shenzhen agrees to transfer underlying assets to PU Yin Ansheng Asset Management acting on behalf of Asset Support Special Plan-2 for an expected cash consideration of approximately RMB 700 million. The second phase of asset-backed securities will be divided into senior and subordinated tiers. The expected face value of underlying assets providing support to the second phase of asset-backed securities under accounts receivable not yet collected is approximately RMB 700 million. With regards to the establishment of Asset Support Special Plan-2, before transferring the underlying assets in accordance with the basic asset purchase agreement, Guangda Green Environmental Management Shenzhen will first enter into debt transfer agreements with 13 project companies within the Group, under which (i) Guangda Green Environmental Management Shenzhen will purchase rights to accounts receivable at face value from these project companies (current and future, existing and prospective) and (ii) Guangda Green Environmental Management Shenzhen will grant these project companies a right of first refusal to repurchase the rights to accounts receivable. In return, project companies will pay Guangda Green Environmental Management Shenzhen a maintenance fee for the rights.