Sany Heavy Industry Co., Ltd. (Sany Heavy) has approved the creation of an asset-backed special purpose plan and the shelf registration of financing-lease asset-backed securities (ABS) with a total size of up to RMB10.00 billion.
The programme, endorsed by the board on 28 August 2026, will securitise trade receivables held by Sany Heavy and its subsidiaries. Issuance will be conducted on the Shanghai Stock Exchange in one or multiple tranches over a two-year window, with each tranche carrying a tenor of no more than five years. The ABS structure will comprise senior and subordinated notes, with a minimum 5% subordination level to be finalised by the rating agencies. Coupon rates will be set at market-based levels at the time of issuance.
Sany Heavy will act simultaneously as originator, asset servicer and liquidity deficiency payment obligor, committing to cover any shortfalls in taxes, fees, senior-note interest and principal during the life of the structure. The company’s controlling shareholder, Sany Group Co., Ltd., intends to subscribe for all subordinated ABS for up to RMB1.00 billion, creating a connected transaction under both Shanghai and Hong Kong listing regulations.
CITIC Securities Co., Ltd. and China International Capital Corporation Limited (CICC) have been appointed as joint plan managers. Proceeds from the sale of ABS will be used by the Special Purpose Plan to acquire eligible receivables from Sany Heavy, with the option to include a revolving purchase mechanism during the issuance period.
Governance steps are in place: on 28 August 2026 the ninth session of Sany Heavy’s board approved the proposal, with interested directors abstaining. The transaction now awaits shareholder approval; interested shareholders will abstain from voting.
Regulators classify the deal as a connected transaction but not a major asset restructuring. Sany Heavy will fulfil disclosure obligations under Chapters 14 and 14A of the Hong Kong Listing Rules as details are finalised.
Sany Group’s latest financials show total assets of RMB264.09 billion, net assets of RMB109.33 billion, 2025 revenue of RMB113.81 billion and net profit of RMB10.20 billion. As of 31 March 2026, total assets stood at RMB263.16 billion with net assets of RMB112.14 billion.
Management stated that the ABS initiative aims to diversify funding channels, unlock working-capital tied up in receivables and enhance overall capital efficiency. Shareholders and potential investors are advised to exercise caution pending further announcements.