The originator last came to market in February with Fuyuan 2015-1, when it securitized Rmb2.95bn worth of auto loans.
That transaction featured quite a simple structure with a Rmb2.55bn 4.9% senior A tranche and a Rmb398m subordinated piece retained by Ford.
Ford is set to repeat the two tier structure with the senior A tranche coming in at Rmb2.625bn and the subordinated piece at Rmb367.5m. The A tranche is rated Aa3(sf)/AA(sf) while the subordinated piece is unrated and will be retained by the originator.
Even the portfolio backing the upcoming deal has more or less the same characteristics as Fuyuan 2015-1. A total of 44,968 loans make up the static pool compared to 41,289 in February.
The weighted average remaining term of the loans (2.11 years), weighted average seasoning (0.65 years) and even the geographic split of the asset pool are similar. The top three regions where the loans are sourced from are Guangdong (15.73%), Jiangsu (10.65%) and Shandong (6.14%).
This time, however, there is a different underwriting group running the deal.
Fuyuan 2015-1 spotted CICC as lead underwriter whereas the new transaction will be run by Bank of China International, China Merchants Securities and Standard Chartered. Morgan Stanley and MUFG are also acting as financial advisers.
Having international banks as lead underwriters is a new trend for China ABS, starting last month with BMW’s Rmb3.5bn Bavarian Sky China 2015-2. HSBC was joint lead underwriter with Citic Securities.
Books for Fuyuan 2015-2 are scheduled to open on December 7.
The senior notes will have a weighted average life of 0.8 years, a scheduled maturity of September 2017 and a legal maturity of July 2021.