* BMW taps yuan denominated domestic capital market
* BMW places ABS backed by domestic car loans
* ABS deal part of strategy to diversify refinancing
* Marks BMW's first ABS placement in China
By Edward Taylor
FRANKFURT, June 12 BMW said on
Thursday it had placed asset-backed securities worth 800 million
yuan ($129 million) in China, a landmark deal that allows the
German auto maker to tap China's domestic capital market.
The transaction marks the carmaker's first asset-backed debt
issue in the world's largest car market.
"Given rising sales volumes in China, the transaction is an
important step toward diversifying our refinancing basis in
local currency," BMW said in a statement.
As part of a broader reform push, Beijing is easing
restrictions on the flow of investment funds into and out of the
country and is slowly opening up the yuan-denominated domestic
market to outside players.
Chinese and foreign firms have previously issued
yuan-denominated "dim sum" bonds in Hong Kong in recent years.
Unlike domestic bonds, dim sum issues are not subject to
approval by Chinese regulators.
"We welcome the new opportunity and play a part in
developing the securitisation market in China," BMW said.
BMW said the notes, which are backed by retail auto loans,
were priced at 4.8 percent for the AAA-rated class A notes and
8.09 percent for the A-rated class B notes.
The auto loan ABS was placed through BMW's Chinese financial
services subsidiary BMW Automotive Finance (China). Last year
BMW was the biggest seller of luxury cars world-wide with 1.65
million vehicles sold. China sales alone rose 19 percent in
In March, rival Daimler AG sold a 500 million
yuan bond to Chinese investors, the first foreign non-financial
corporate bond issue in China's domestic market.
($1 = 6.2175 Chinese Yuan Renminbi)
(Reporting by Edward Taylor; Editing by Ludwig Burger and