Ford Automotive Finance China, a subsidiary of the Ford Motor Credit Company, has completed its first asset-backed securitization (ABS) in China to support the financing of Ford-brand vehicle sales
Ford Automotive Finance (China) is the first wholly foreign-owned auto finance company to complete an ABS transaction - for 800 million renminbi - in China under the most recent ABS pilot program governed by the China Banking Regulatory Commission and the People's Bank of China.
"This is a significant transaction, as it helps increase our access to the capital markets in China in support of the One Ford growth plan," said Nu Tran, president of Ford Credit Asia Pacific. "It also supports our global strategy of funding diversification and funding our business locally."
Ford Credit is an experienced issuer of ABS. It has been securitizing assets since 1989 and has public and private programs in the United States, Europe, Canada, Mexico and, now, China.
"Ford Automotive Finance (China) is adding both dealers and retail customers quickly in China, and we will support Lincoln when the brand arrives later this year," Tran said. "We now have another funding tool to support their financing needs."
Ford Credit's subsidiary in China began operations in 2005. It provides wholesale financing for more than 400 dealers and retail financing through nearly 500 Ford dealerships in 290 cities across China.
