Xpeng has completed a RMB 710 million ($100 million) asset-backed securities (ABS) issuance to boost working capital and expand its new energy vehicle (NEV) leasing operations.
The issuance marks China’s first off-balance-sheet ABS for NEV financial leasing, allowing asset derecognition without relying on external credit enhancement.
The offering relied on the credit quality of Xpeng’s leasing assets, with the AAA-rated senior A tranche achieving a coupon rate of 2.28 percent.
The issuance received the highest green rating, G1, and the underlying asset pool is projected to reduce carbon dioxide emissions by 11,000 metric tons annually while saving 5,200 metric tons of standard coal equivalent.
Proceeds from the issuance will be allocated to green assets such as NEVs to encourage wider adoption of electric vehicles. This follows Xpeng’s two ABS issuances in 2022, which together raised RMB 1.8 billion.