Mercedes-Benz Auto Finance Ltd. (MBAFC), part of the Mercedes-Benz Mobility group, has issued its first Green Auto Loan Asset-Backed Security (ABS) in the Chinese Interbank Bond Market.
The Class A Notes, sized at RMB 765 million ($105 million), were oversubscribed three times, with a weighted average life of 1.42 years and a coupon rate of 1.87%. The issuance was arranged by China Merchants Securities, BNP Paribas (China) Limited, Bank of China, and Standard Chartered Bank (China) Limited. This marks Mercedes-Benz’s first Green ABS worldwide, and it is the first foreign automotive company to issue a Green ABS in China.
The Green Auto Loan ABS aligns with China’s domestic Green Bond standards for Finance Companies. The collateral pool consists of auto loans for Battery Electric Vehicles (BEVs), and the proceeds will fund new auto loan contracts for BEVs with MBAFC customers in the coming months.
Since March 2016, MBAFC has issued 17 transactions under its Silver Arrow China Loan (SACL) platform, totaling approximately RMB 114 billion ($15.6 billion). As both originator and servicer, MBAFC ensures that the ABS notes are backed by a pool of high-quality auto loans.