On 22 Feb, Xpeng Auto announced the successful issuance of “Great Wall Jiaxin-Guojun-Xpeng Finance & Leasing Green Asset Support Scheme (ABS) (Carbon Neutral)”, which is its first ABS issuance in the mainland capital market and the first carbon neutral auto leasing ABS on Shenzhen Stock Exchange.
The original equity owner of the issue is Guangzhou Xpeng Auto Finance & Leasing Co. The total size is RMB 775 million and has a maturity date of December 14, 2023.
Received positive subscriptions from investors, with a nominal interest rate of 3.0% and a subscription multiple of 3.10 times for senior A (rated AAA) and senior B grade (rated AA+) nominal interest rate of 3.50%, with a call multiple of 4.61 times. The low nominal interest rate broadens the low-cost financing option.
Xpeng’s new financing option is more competitive
In October of last year, NIO launched a similar ABS on the Shanghai Stock Exchange, the New Energy Vehicle Leasing ABS. It is also the first carbon-neutral ABS in China, with a total size of RMB 1.03 billion and a maturity date of 2023.
The RMB 812 million senior A tranche ABS is rated as AAA with a nominal interest rate of 3.64%. The RMB 48 million senior B tranche ABS is rated as AA+ with a nominal interest rate of 4.20%.
The issuance of this issue is lower than the nominal interest rate of NIO, which shows the lower cost of finance for Xpeng.
The company has been more active in financial activities, with listings in New York and Hong Kong, and this time successfully raising capital in mainland China. It shows the ambition and expectation of the expansion of Xpeng.
Xpeng was included as a constituent of the Hang Seng TECH Index in Hong Kong only a few days ago which shows the market’s confidence in Xpeng from all sides.