Zero Technology Finance (00093) establishes an asset-backed securitization program

Zhitong Finance App News, Zero Technology Finance (00093) announced that on October 17, 2024, Zero Finance, a wholly-owned subsidiary of the company, has set up an asset-backed securitization plan.

Under the Asset-Backed Securitization Program, (a) Zero Finance (as seller), issuer Zenith Funding No.1 Limited (as buyer) and the guarantee trustee (as a guarantee trustee) have entered into a receivables purchase agreement on October 17, 2024 to transfer the receivables; (b) Zero In Finance (as seller and service provider), issuer (as issuer), and guarantee trustee (as guarantee trustee) have entered into services on October 17, 2024 to manage receivables assigned under the receivables purchase agreement agreement; and (c) Zero in Finance (as holder of post-payment notes), the issuer (as the issuer), the Registry (as the trustee) and the guarantee trustee (as the trustee of guarantee) have entered into a deeds to issue postpaid notes on October 17, 2024 to subscribe to the issuer's post-payment notes. According to this, the bank has granted financing of up to HK$800 million in the form of preferential loan notes, which will be used to purchase receivables from zero-in finance and to transfer receivables from zero-in finance to the issuer and subscribe to the issuer The notes are used as collateral.

The Board believes that the establishment of an asset-backed securitization program will help (a) support the Group's asset discovery and business growth; (b) provide flexibility in investing when Zero Finance requests financing at its discretion; and (c) increase the Group's liquidity and improve its asset efficiency and financial position.