Cango Inc. Announces Its Subsidiary’s Issuance of RMB665 Million ABS
SHANGHAI, Nov. 11, 2019 /PRNewswire/ -- Cango, Inc. (NYSE: CANG) ("Cango" or the "Company"), a leading automotive transaction service platform in China, today announced that its subsidiary, Shanghai Autohome Financial Lease Co. Ltd. (“Shanghai Autohome”), successfully issued asset-backed securities (“ABSs”) in an aggregate amount of RMB665.0 million (US$94.9 million) (the “Issuance”) on the Shenzhen Stock Exchange in November 2019. The ABSs are backed by assets, including Shanghai Autohome’s financing lease credits and related security interests on car collaterals under Shanghai Autohome’s financing lease contracts with its lessees, which have consistently delivered strong cash flows. The ABSs are divided into (i) a senior class for a principal amount of RMB518.0 million (US$73.9 million), rated “AAA” by China Lianhe Credit Rating Co., Ltd. and accounting for approximately 77.9% of the Issuance, and (ii) a junior class for a principal amount of RMB147.0 million (US$21.0 million), accounting for approximately 22.1% of the Issuance.
Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, "The successful issuance of our asset-backed securities is a testament to the high quality of our current asset portfolio. It also highlights our ability to access the domestic capital market. We are confident that the diversification of our capital-raising instruments will benefit the future development of our business lines.”