Sany Heavy Industry to Issue Up to RMB9 Billion in Lease-Backed Securities via Subsidiary

Sany Heavy Industry Co., Ltd. Class H ( (HK:6031) ) has provided an update.

Sany Heavy Industry has approved a plan for its subsidiary Sany Financial Leasing to set up a special purpose plan and issue up to RMB9 billion in financing lease asset-backed securities, backed by rental receivables and related security interests from its leasing operations. The securities will be issued in tranches over two years, divided into senior and subordinated classes, with some tranches potentially structured on a revolving basis.

The company will act as liquidity deficiency payment obligor, committing to cover any shortfalls in the special purpose plan needed to pay taxes, fees, interest, and principal on the ABS, while controlling shareholder Sany Group may subscribe for up to RMB1 billion of subordinated tranches. This structure is designed to monetize leasing receivables, enhance funding flexibility, and signal support from the controlling shareholder, which may improve investor confidence and optimize the group’s capital structure and liquidity profile.

More about Sany Heavy Industry Co., Ltd. Class H

Sany Heavy Industry Co., Ltd. is a Chinese construction and heavy equipment manufacturer with a diversified business that includes financial leasing services through its subsidiary Sany Financial Leasing Co., Ltd. The group leverages financing lease structures to support equipment sales and provide funding solutions to customers in its core industrial markets.

Average Trading Volume: 3,229,197

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$182.4B

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