The trend of consumer finance financing changes: financial bonds, ABS are cold, second -level capital debt "card shells", syndicated loans are hot

Produced | WEMONEY Research Room

Wen | Liu Shuangxia

Consumer finance second -level capital bonds ushered in the second case of approval issuance. Following the approval of the local CBRC last year, the Consumer Finance of Consumer Finance was issued, and recently, China Post Consumer Finance has also been approved to issue a second -level capital debt.

According to the process, the two institutions still need to obtain the administrative license of the central bank in order to issue second -level capital bonds. At present, Zhaocian Consumer Finance has been stuck for 10 months in this session.

At the same time, it is worth noting that there have been some new changes in the financing trend of the consumer finance industry. In addition to the "card shell" of secondary capital bonds, financial bonds and ABS are cold, and the merchandise loans are hot.

01 Two Zhaolian and China Postal Capital Getting Approval

Recently, the Guangdong Banking Regulatory Bureau agreed that the China Post Consumer Finance Company issued a second -level capital bond with no more than 1.8 billion yuan, and was included in the company's second -level capital in accordance with relevant regulations.

Secondary capital bonds refer to bonds issued by financial institutions, after the sequence of other liabilities, before equity capital, to supplement the second -level capital bonds.

Secondary capital bonds have long been widely adopted by commercial banks, and consumer financial institutions can issue second -level capital bonds in 2020. At that time, the CBRC issued the "Notice on Promoting Consumer Finance and Automobile Financial Companies to Enhance Sustainable Development Capability and Improve the Quality of Financial Services", which clearly "increased capital supplementary methods and support consumer finance companies and auto finance that meet the license conditions. The company issues second -level capital bonds in the interbank market to broaden capital supplementary channels and enhance the ability to resist risks. "

Since then, in August 2021, Changyin May Eight Consumer Finance took the lead to test the water and publicly bidd for the procurement project of second -level capital debt underwriters. But then there was no following.

In September 2021, the Shenzhen Banking Insurance Regulatory Bureau approved the issuance of second -level capital bonds with a consumer finance of not more than 2.2 billion yuan. This became the first case in the consumer finance industry to issue secondary capital bonds.

However, 10 months have passed, and the second -level capital debt of recruiting consumer finance is still stuck in the approval of the central bank.

A lawyer who participated in the issuance of bank second -level capital bonds introduced that according to the process, the issuing agency itself should hold a shareholders' meeting and the board of directors for issuing secondary capital bonds and form relevant resolutions. After that, the main underwriters, other underwriting groups, law firms, audit institutions, credit rating agencies and other intermediaries entered the market to perform due diligence to conduct detailed investigations on the historical revolution, organizational structure, audit reports, assets and liabilities, etc. Rectify it to ensure its legitimate compliance.

"After all kinds of documents are prepared, enter a key approval link. You need to submit the approval of the issuer's local Banking Regulatory Bureau (provincial level) and obtain the approval of the bonds, and then the local Banking Regulatory Bureau will be reported to the People's Bank of China for approval and will Get the administrative license decision to agree to issue bonds before issuing it. "The above -mentioned lawyer introduced.

It is reported that according to the bank's issuance of secondary capital and debt experience, it is approved from the local Banking Regulatory Bureau to the issuance of the issuance of administrative licensing to the central bank, and there will generally have a time interval from 0 to 3 months in the middle.

At present, it is still unknown to recruit consumer finance and China Post consumer finance who will become the first early adopter.

For licensed consumer finance companies, issuing second -level capital bonds can enrich the source of capital, solve the source of long -term funds, optimize the capital structure, consolidate capital guarantee capabilities, and enhance risk resistance. The capital adequacy ratio is convenient for the expansion of business and assets, and the needs of business development.

02 The financing trend of consumer finance industry changes

In fact, this year's consumer finance financing market has undergone some new changes.

The Wemoney Research Office observed that recently, consumer finance companies ABS and financial bonds have been cold, and the merchandise loans have been heated. According to statistics, 7 consumer finance companies have led the dealer loan channels to raise funds during the year.

Common financing channels for consumer finance institutions include shareholders' funds, interbank borrowing, ABS, financial bonds and merchandise loans. Generally speaking, financing costs from high to low are merchant loans, financial bonds, ABS, interbank borrowing, and shareholder funds.

Consumer Finance ABS was once one of the keywords in the "hot search" in the asset securitization market. In 2016, the consumer loan ABS began to develop rapidly. By 2017, it had occupied nearly one -third of the market share of the ABS ABS. The development of ABS for 18 years and 19 years has gradually reached its peak. Since then, with the launch of the ants and the release of new regulations for regulatory and interviews, and the release of new loans, the issuance of ABS has gradually become cold, and consumer finance ABS has entered the era of strict supervision.

In terms of financial bonds, according to incomplete statistics, at present, with the approval of the Banking Regulatory Commission, there are 8 consumer finance companies with financial bond issuance qualifications, namely BOC Consumer Finance, Gitzo Consumer Finance, Industrial Consumer Finance, Recruitment of Consumer Finance, and immediately Consumer finance, China Post Consumer Finance, Harbin Bank Consumer Finance, Central Plains Consumer Finance. In fact, the launch of the launch includes BOC Consumer Finance, Gitzo Consumer Finance, Industrial Consumer Finance, Recruitment of Consumer Finance, and consumer finance immediately.

According to the China Bond Information Network, the latest financial bond issuance of consumer finance companies still stay in October last year.

A consumer finance industry person said that compared to other financing methods such as shares and bonds, the entry threshold for lending loans is relatively low, the operating time limit is short, and the procedures are easier. The current supervision of ABS and financial bonds is tightened, and the approval process is long.

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