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GMAC-SAIC completes China’s first-ever financial bond issuance by an auto finance company


SHANGHAI, China – GMAC-SAIC Automotive Finance Co., Ltd. (GMAC-SAIC) announced that yesterday it completed the first-ever financial bond issuance by an auto finance company in China. The company issued a RMB 1.5 billion, three-year, floating rate financial bond. The interest rate for the initial year has been set at 3.00 percent. The bond will pay interest on an annual basis and the interest rate will be reset annually at 75 basis points above the People’s Bank of China (PBOC) one-year deposit rate.

“We are pleased to continue our tradition of innovation in China’s capital markets with the completion of this transaction,” said Rick Livingood, general manager of GMAC-SAIC. “In January 2008, we issued China‘s first auto asset-backed securitization, and GMAC-SAIC is now the first-ever auto finance company to issue a financial bond. This issuance diversifies our access to funding and liquidity, which further strengthens our ability to meet the needs of customers in this highly competitive marketplace.”

Prior to issuing the bond, GMAC-SAIC received regulatory approval from the PBOC and the China Banking Regulatory Commission. It is rated triple-A by Dagong Global Credit Rating Co. Ltd. and is guaranteed by the Bank of China. The bond was issued in China’s National Interbank Market, which provided access to a broad investor audience within China.

“As the largest auto finance company in China, we continue to partner with the government and our regulators to pioneer the country’s capital markets,” said Benjamin Zhang, deputy general manager of GMAC-SAIC. “Additionally, our strong relationships with our partner banks in China were critical to ensuring the successful execution of this transaction.”

GMAC-SAIC Automotive Finance Co., Ltd. is a joint venture between Ally Financial Inc. (formerly GMAC Inc.), Shanghai Automotive Group Finance Co., Ltd. (SAICFC) and Shanghai General Motors Co. Ltd. (Shanghai GM). Ally Financial Inc. is one of the world’s largest automotive financial services companies and offers a full suite of automotive financing products and services in key markets around the globe. SAICFC, a subsidiary of Shanghai Automotive Industry Corp. Group, is one of China’s most successful non-banking finance companies. Shanghai GM is a joint venture established by General Motors Corp. and Shanghai Automotive Industry Corp. Group (SAIC), a leading passenger car manufacturer in China.


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