Recently, XPeng has announced its success in issuing an ABS(Asset-backed securities) of ‘Great Wall Jiaxin-Guojun-XPeng Green Asset support and finance lease plan(Carbon neutralisation)’.
This would be XPeng’s first ABS issuance on the Chinese capital market. It would also make XPeng the first carbon-neutral auto leasing ABS on the Shenzhen Stock Exchange.
According to the company, the original owner of this issuance would be XPeng’s subsidiary, Guangzhou Xiaopeng Automotive Financing Lease Co Ltd.
Specific information for the ABS
This ABS has a total size of RMB 775 million ($122 million) in size and has a maturity date of December 14, 2023.
Its RMB 624 million senior A tranche ABS has a AAA debt rating, a coupon rate of 3.00 percent, and a subscription multiple of 3.1 times.
Its RMB31 million senior B tranche ABS has a debt rating of AA+, a coupon rate of 3.50 percent, and a subscription multiple of 4.61 times.
Data showed that by January, XPeng had sold 12922 cars, with a year-on-year increase of 115%. The historical sale number has reached more than 150 thousand.
On Feb. 9, XPeng Vehicle (9868. HK) has been formally included in Shanghai-Hong Kong Stock Connect and becomes the first new carmaker that made it.
Comparison between XPeng and NIO’s ABS
On 2021, Oct. 29, XPeng’s local counterpart NIO has also issued a new energy vehicle (NEV) leasing ABS on the Shanghai Stock Exchange via its subsidiary firm, Shanghai NIO Finance & Leasing Co.
There are a few differences between XPeng’s ABS and NIO’s:
- XPeng’s issued ABS of lower size than NIO’s.
- Their ABS have the same debt ratings, But XPeng has a lower coupon rate, meaning lower financing costs.
This is due to the two consecutive benchmark rate cuts by China’s central bank on December 20 last year as well as January 20.
In fact, XPeng’s coupon rate creates a new minimum for the new car manufacturing companies’, enabling it to expand its low-cost financing channels.