The offering of “CITIC Securities-Jiaxing Phase I Green Corporate Asset-backed Special Plan (ABS) Backed by the Natural Gas Charging Right” was successfully completed on the Shanghai Stock Exchange on November 6, 2024, with total value of RMB594 million.

This Plan is asset securitization project backed by the right to charging natural gas fees, and is the first offering under the framework of the “CITIC Securities-Jiaxing Phase I Green Corporate Asset-backed Special Plan (ABS) Backed by the Natural Gas Charging Right”. The underlying asset of the Plan is the right to natural gas fees corresponding to the revenues from gas supply to the specific customers within the specific period received by the original right holder within the concession period and the concession area, pursuant to the Urban Gas Management Regulations, the Administrative Measures for the Concession of Municipal Utilities, the Gas Management Regulation of Zhejiang Province, and other applicable laws and regulations.

The Plan is managed by CITIC Securities Co., Ltd. as the special plan manager in the Plan, Jiaxing Natural Gas Network Operation Co., Ltd. as the originator, with Jiaxing Natural Gas Network Operation Co., Ltd. and Jiaxing Urban Investment & Development Group Co., Ltd. jointly furnished credit enhancement as primary guarantor for deficit payment and secondary guarantor for deficit payment respectively.

Legal team

Attorney Dong Wan and her team members, attorneys ZHANG Yiming and WANG Qingru, advised on the structure of the framework with their expertise and assisted in the offering. In particular, they conducted due diligence on the truthfulness and legality of the qualifications of the parties involved in the Plan and the underlying assets, among others, assisted in designing the transaction structure and preparing for the transaction documents and such other legal instruments in respect of the Plan, and were highly commended by the client.