Sany Heavy Industry (HKG:6031, SHA:600031) said its board approved plans to establish an asset-backed special purpose vehicle and issue asset-backed securities under a financing lease, with a shelf size of up to 10 billion yuan, according to an Aug. 28 Hong Kong bourse filing.
The securities will be backed by accounts receivable held by the company and its subsidiaries and may be issued in multiple tranches over two years, with each tranche having a duration of up to five years.
SANY Group, the controlling shareholder, plans to subscribe for all subordinated securities, with total subscriptions capped at 1 billion yuan.