CEB GREENTECH (01257) has announced that its wholly-owned subsidiary, CEB Greentech Management Shenzhen, intends to act as the originator for a new issuance. The subsidiary plans to transfer underlying assets to the Asset-Backed Special Plan - Phase 2, which was initiated and established by浦银安盛资产管理 on the Shenzhen Stock Exchange. Under this arrangement, the second phase of asset-backed securities will be issued by the plan, managed by浦银安盛资产管理, to qualified institutional investors in China.

In connection with the proposed issuance of the second phase of asset-backed securities, CEB Greentech Management Shenzhen, acting as the seller and originator, will enter into an underlying asset purchase agreement with浦银安盛资产管理, acting on behalf of the Asset-Backed Special Plan - Phase 2 as the buyer. According to the agreement, CEB Greentech Management Shenzhen agrees to transfer the underlying assets to浦银安盛资产管理, representing the plan, for an expected cash consideration of approximately 700 million yuan.

The second phase of asset-backed securities will be divided into priority and subordinated tiers. The book value of the accounts receivable under the underlying assets backing the securities is expected to be approximately 700 million yuan.

To establish the Asset-Backed Special Plan - Phase 2, and prior to the transfer of underlying assets under the purchase agreement, CEB Greentech Management Shenzhen will first enter into credit rights transfer agreements with 13 project companies within the group. Under these agreements, (i) CEB Greentech Management Shenzhen will acquire the rights to the accounts receivable from these project companies at book value, and (ii) CEB Greentech Management Shenzhen will grant these project companies a priority right to reacquire the rights to the accounts receivable. In return, the project companies will pay a rights maintenance fee to CEB Greentech Management Shenzhen.