The National Association of Financial Market Institutional Investors (NAFMII) issued the Announcement on the Market Assessment Results of Members (Trust Companies) with Intention of Underwriting on November 22, 2018, releasing a new list of trust companies that have been approved for underwriting non-financial corporate debt financing instruments. As many as six trust companies made it to the list, including China Foreign Economy and Trade Trust Co., Ltd. (FOTIC).
Below are details of the announcement:
The issuance of trust asset-backed notes has gained momentum since NAFMII’s release of the Guidelines for Asset-Backed Notes of Non-Financial Companies (Revised) in late 2016. Trust companies have accumulated rich experience in the distribution of such products as trust agencies, thereby extending themselves through the upstream and downstream of the ABN business chain.
Backed by the development of interbank market and trust industry, approval for undertaking debt-financing instruments by non-financial companies is of great significance to the future development of trust companies. In addition to participating in the ABN business as a trustee, trust companies can get involved in ABN sales, including Pre-ABN and SPV trust. In this way, they can provide one-stop comprehensive financial services and diversified means of cooperation with the institutions. At the same time, the approval has enriched the types of products that trust companies can sell externally, besides bridging the gap between standardized and non-standardized products. In this way, it has further diversified the means through which trust companies can serve institutional customers.
In recent years, FOTIC has been deeply involved in asset securitization. It has become an industry frontrunner in terms of asset types, transaction structure design, business experience, and level of team professionalism. As of November 2018, FOTIC has issued a total of 30 credit asset securitization products and 11 private equity asset securitization products, worth nearly RMB 85 billion and RMB 70 billion, respectively. With years of extensive efforts in asset securitization, FOTIC has also built a dedicated and efficient business team that is becoming increasingly proficient.
Having received the approval to underwrite non-financial corporate debt financing instruments, FOTIC will strictly adhere to self-discipline under the guidance of regulatory authorities and NAFMII. The company will establish a complete internal control system and a strict firewall mechanism to conduct businesses in compliance with laws and regulations.
Relying on the synergy between industry and finance within the Sinochem Group and its professional reputation in securitization, FOTIC will explore the underwriting opportunities to build a strong market presence and provide comprehensive, efficient, and professional financial services for its customers.