On June 5, “Weineng Battery–Huaneng Trust 2026 First Green Technology Innovation Asset-Backed Securities (ABS)” was successfully issued on the Shenzhen Stock Exchange. The project was granted a RMB 3 billion ($441 million) warehouse issuance quota by the exchange, with an initial tranche of RMB 1 billion ($147 million). It marks the first warehouse-style power battery green technology ABS issued on the Shenzhen Stock Exchange. Weineng is an independent company jointly established in 2020 by NIO Inc and CATL, among other partners, focusing on battery leasing services (BaaS) and forming a “vehicle–battery separation” operational model in coordination with NIO. Weineng Battery–Huaneng Trust 2026 First Green Technology Innovation ABS Pricing for the issuance reflected relatively low funding costs, with the senior A1 tranche coupon rate set at 1.72%, placing it at the lower end among comparable asset-backed securities. For the capital-intensive power battery sector, such pricing is generally interpreted as a repricing of cash flow stability by the capital markets. The issuance comes less than two months after its previous financing move. On April 30, Weineng completed its first green technology asset-backed special plan, raising RMB 1.055 billion ($155 million) against a RMB 5 billion ($737 million) warehouse quota. On the same day, its second 2026 green directional asset-backed note (ABN, Bond Connect) was also issued at RMB 1 billion ($147 million). To date, the company has issued a cumulative RMB 4 billion ($588 million) of similar instruments in the interbank market. In this ABS transaction, Huaneng Guicheng Trust acted as plan manager, with Everbright Securities, CICC, and Industrial Securities participating as underwriters. Financial institutions in this ABS transaction Proceeds from such ABS structures are used to securitize multi-year battery leasing cash flows in advance, funding continued battery procurement, supporting battery-swapping network operations, and financing second-life utilization of retired batteries. In battery swapping and BaaS models, batteries represent the core asset and require significant capital investment. By front-loading cash flows through ABS issuance, the model effectively extends operational scale while shortening cash recovery cycles. As of now, Weineng manages over 51 GWh of battery assets and serves more than 650,000 users.
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