The first phase of the asset-backed special program of the Huatai-Ctrip financial services product “Take It” has been officially approved by the Shenzhen Stock Exchange (SSE), according to a recent notice.
The first asset-backed special program of Ctrip Financial Services has raised a total of RMB 3 billion (around USD 157 million) in funding using asset-backed securities (ABS) – a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. This makes Ctrip the first company in the tourism industry to issue ABS shelf offering.
A shelf offering is a Securities and Exchange Commission provision that allows an issuer to register a new issue without selling the entire issue at once, enabling an issuer to access markets quickly, with little additional administrative paperwork.
Ctrip’s new issue gaining shelf registration indicates that SSE has endorsed the leading tourism company through fiscal policies.
The latest funding will be used for Ctrip's Take It, a phased travel consumption product on Qunar’s platform. Yan Feng, CEO of Ctrip Financial Services, said: “Take It is designed for users in the 'travel + consumption' link. It aims to make travel more affordable for customers and to upgrade travel services and experiences.”
Feng also revealed that “Ctrip will launch more high-quality consumer finance assets through ABS channels”.
Insiders believe that the issuance of the first tourism ABS product reflects Ctrip and other overseas listed companies’ optimism in embracing the Chinese capital market.