China Development Bank, one of three policy banks, plans to issue 8 billion yuan ($1 billion) of asset-backed securities this year in its third ABS sale, underwriting sources said on Aug 28.

The ABS will be based on 95 loans extended by China Development Bank involving 67 creditors.

"The bank plans to apply for the latest ABS issue to the central bank and banking regulator soon," one source said. "The approval process will take four months or less."

China Development Bank, which mainly lends to key infrastructure projects in line with government instructions, plans to bring its total ABS issued to 30 billion yuan in the foreseeable future, the sources said.

The lender issued one of China's first ABS products, 4.18 billion yuan in bonds backed by a portfolio of industrial loans, late last year. It issued its second batch of ABS, worth 5.73 billion yuan, in April this year.

China may approve more than 100 billion yuan of ABS this year as more banks apply to issue paper backed by their loan portfolios, the official China Securities Journal said earlier this month.

Source:佚名