VNET Group (VNET.US) recently announced the successful issuance of the "CPIC Asset - VNET Data Center Holding-Type Real Estate Green Asset-Backed Securities (ABS) Special Plan." This marks the first green holding-type real estate ABS in China's data center industry, representing a major breakthrough for VNET Group in green finance and asset securitization innovation while setting a new benchmark for high-quality and sustainable development in the sector.
In this issuance, VNET Group served as the issuer and originator and will act as the operational management entity to ensure long-term stable and sustainable operations post-issuance. CPIC Asset Management Co., Ltd. ("CPIC Asset") acted as the plan manager and lead sales agency, coordinating with leading institutional investors, including China Pacific Insurance Group, to subscribe to the primary product shares. Shenwan Hongyuan Securities Co., Ltd. served as the co-sales agency, while Bank of Communications Co., Ltd. acted as the custodian and supervising bank.
The ABS, with an issuance size of RMB 860 million, will be listed on the Shanghai Stock Exchange as a standardized securitized product. The underlying assets were transferred to the ABS special plan through the equity transfer of the project company, with investors subscribing to the ABS shares managed by the plan manager to safeguard their interests.
The underlying assets consist of urban IDC projects held by VNET Group in key cities, where data center demand ranks among the highest nationwide, benefiting from significant regional advantages. These areas feature robust network infrastructure, high-speed data transmission, low latency, and a concentration of financial institutions, internet companies, and research entities with substantial data hosting needs—ensuring stable and growing customer demand.
With a mature surrounding industrial ecosystem and high customer retention rates, long-term service agreements with multiple enterprises generate stable and predictable cash flows. This not only ensures revenue stability but also provides solid support for ABS returns, reducing investment risks and boosting investor confidence.
Notably, this is the first green holding-type real estate ABS successfully issued in China's data center industry. A professional third-party evaluator awarded the CPIC Asset - VNET Data Center ABS the highest G-1 rating under the green ABS assessment framework.
The project aligns with China's dual-carbon strategy, leveraging photovoltaic power generation and AI energy efficiency management to establish a green data center benchmark. By incorporating ESG investment principles, it creates a positive correlation between environmental benefits and investment returns, forming a virtuous cycle of "green operations—value enhancement—capital appeal."
Through this innovative financial instrument, VNET Group can effectively monetize its existing IDC assets, freeing up capital for technology upgrades, capacity expansion, and M&A integration while improving operational and capital efficiency. The market-making mechanism further enhances the product's attractiveness.
Moving forward, the company plans to deepen collaborations with financial institutions, explore industry-specific financial innovations, and advance green and intelligent upgrades in data centers to drive high-quality industry development.