Han Kun advises Baidu on establishing "Baidu Umoney - Huaxin 2016 Phase I Loan Asset-Backed Special Plan"
2017-04-24
Recently, "Baidu Umoney - Huaxin 2016 Phase I Loan Asset-backed Special Plan" (the "Plan") was successfully listed on the Shanghai Stock Exchange. The Plan is the first asset securitization product issued by Baidu's consumer finance business, representing the Internet giant’s entry into the field of consumer finance asset-backed securities.
Chongqing Baidu Small Loan Co., Ltd. is the originator of the Plan, and the underlying assets consist of Baidu Umoney customer education loans and education service fees due from education organizations. The total issuance of the asset-backed securities amounted to RMB 605 million, and the asset-backed securities are structured into a senior tranche of classes A, B and C, and mezzanine and junior tranches. Within the senior tranche, the class A securities amount to RMB 425 million and are rated AAA, the class B securities amount to RMB 20 million and are rated AA+, and the class C securities amount to RMB 20 million and are rated AA. The mezzanine tranche amounts to RMB 64 million and is rated A, and the originator-subscribed junior tranche amounts to RMB 66 million. The Plan will assist Chongqing Baidu Small Loan Co., Ltd. to open up new financing channels and improve the company's asset liquidity. In addition, the Plan will also allow more consumers to access high quality educational loan services, which will further contribute to the development of Chinese education and training industry.
Han Kun Law Offices acted as the legal counsel for the Plan. The firm provided professional, highly effective legal services with respect to designing and demonstrating the transaction structure, due diligence, drafting transaction documents and the issuing legal opinions. Han Kun successfully assisted Baidu to establish the Plan in cooperation with other intermediary organizations.