Recently, “JD - China Top Credit Microcredit Asset-Backed Securitization” (referred to as “JD - China Top Credit ABS”) has been successfully issued on JD ABS Cloud Platform, the issue of this ABS product is another successful practice assisted with comprehensive financial legal services provided by Fenxun Partners to JD and China Top Credit, following JD Baitiao ABS, JD Factoring ABS and China Top Credit Microcredit Beneficial Rights of Trust ABS.

Differs from traditional structure of ABS products, JD - China Top Credit ABS introduces the structured trust as the single SPV; for the purpose to grant small consumer financial loans to borrowers recommended by China Top Credit and form underlying assets of the structured trust, JD Finance, as the capital intermediary, subscribes senior class of the structured trust with 500 million yuan, China Top Credit subscribes subordinated class of the structured trust with 125 million yuan. Then senior trust beneficial right shares held by JD Finance are divided into Senior A Class, Senior B Class and Senior C Class which are rated by professional rating agency afterwards, trust beneficial right shares that rated beyond AAA Class are transferred to institutional investors in capital market, funds contributed by JD Finance could therefore be withdrew. To provide credit enhancement for investors, JD Finance retains a part of mezzanine trust beneficial right shares.  

To insure interests of investors, this ABS product involves two Asset Service Agencies, one is China Top Credit as the loans service agency, the other is JD Finance as the loan supervision agency and backup asset service agency; besides, 100Credit Financial Information Services is also included to provide guarantee to the structured trust as the information service agency.

This project successfully proceeds due to the trust and cooperation given by JD Finance and China Top Credit to all agencies, and coordinated works delivered by Bohai International Trust Co., Ltd, Orient Securities Asset Management Company Limited, Fenxun Partners, Shanghai Brilliance Credit Rating & Investors Service Co., Ltd etc.

The Fenxun team was led by Partners Wang Jianzhao and Yang Guangshui, and supported by Lawyers Shi Junnan, Lai Hui, Zhang Ming and Guo Yuan, all team members were engaged in the establishment and reform of the structured trust, the issue of the ABS product and legal services providing.

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