The move is said to represent a paradigm shift in the way in which asset-based financial products are viewed
Digital asset, artificial intelligence (AI) and blockchain company, Seven Stars Cloud Group (SSC), has secured a three-year contract to raise $24bn to support large-scale upgrading of electric buses within China.
The deal with National Transportation Capacity Company (NTS), a full-service operator for electric buses, will see SSC issue fixed income lease financing-based products through a global strategic alliance network.
The move is to comply with Chinese government’s regulations for all buses to be replaced with electric buses by 2021. The market size for the mandatory replacements and upgrades to achieve fully-electric bus operations in China is estimated to be 1 trillion RMB ($145bn).
Under the terms of the deal, SSC, through its global strategic alliance network, will provide two financing campaigns, one in China and the second across global markets.
For the China-based financing, SSC will conduct financing activities through the sale of fixed income products to raise 60bn RMB ($8.75bn) over three years. For the global markets financing activities, SSC will exclusively provide both fixed income and asset digitisation products to raise $15bn over three years.
“This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract,” said Bruno Wu, chairman and CEO of Seven Stars Cloud.
“It represents a new era and a paradigm shift in the way in which we view asset-based financial products; and it will serve as a window to the world on how asset value and liquidity can be unlocked by traditional industries as we take fixed income products into the digital era.”
By combining regulated financial infrastructure, and the market confidence in asset-based products, with AI-enhanced risk management and the dynamics of blockchain-enabled fractionalisation, securitisation, tokenisation, and global trading of token-based offerings, SSC said it is delivering the “next-generation of financial products” which will be compelling for both asset-rich industries and investors alike.
"It will serve as a window to the world on how asset value and liquidity can be unlocked by traditional industries as we take fixed income products into the digital era”
“A combination of SSC’s blockchain and AI technologies, combined with our shared mission for unlocking both liquidity and enterprise value through asset digitisation, will result in a significant transformation of the entire lease financing-based fixed income market,” added Jihong Huang, president of NTS.
NTS is the largest full-service operator for electric buses, with sales, lease financing, a charging station network, and real-time data services including media, payments, maps, and facial recognition. Each of the leading 10 bus manufacturers in China are reported to “strongly back” NTS in this initiative.
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