BEIJING, March 1, 2016 /PRNewswire/ -- Yirendai Ltd. (NYSE: YRD) ("Yirendai" or the "Company"), a leading online consumer finance marketplace in China, today announced that the Company will become the first online consumer finance marketplace in China facilitating consumer loan products with asset-backed security ("ABS") structure.
As part of Yirendai's strategy to diversify and expand its investor base from individual to institutional investors, the Company established a business relationship with a trust (the "Trust") in October 2015 under which the Trust extended loans in an aggregate principal amount of RMB250 million to borrowers on Yirendai's online marketplace.
The original beneficiary of the Trust has transferred its beneficiary rights in the Trust to a special purpose vehicle, which has proposed to issue and list RMB250 million ABSs for trading on the Shenzhen Stock Exchange in China (the "Proposed Offering"). The Proposed Offering has been approved by the Shenzhen Stock Exchange. The underlying assets of the ABSs are the loans extended by the Trust through Yirendai's online marketplace with a total principal amount of RMB250 million. Yirendai will continue to provide post origination services with respect to the underlying assets.
"This is a very important strategic step forward for Yirendai," said Mr. Ning Tang, Executive Chairman of Yirendai. "Facilitating consumer loan ABS products in China will expand our sources of funding and enable us to better serve borrowers and investors through our online marketplace."
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yirendai's control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yirendai's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yirendai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yirendai's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yirendai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Yirendai Ltd. (NYSE: YRD) is a leading online consumer finance marketplace in China connecting investors and individual borrowers. The Company provides an effective solution to address largely underserved investor and individual borrower demand in China through an online platform that automates key aspects of its operations to efficiently match borrowers with investors and execute loan transactions. Yirendai deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yirendai's online marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For more information, please visit yirendai.investorroom.com.
For investor and media inquiries, please contact:
Director of Investor Relations
Mr. Christian Arnell
Phone: +86 (0) 10-59001548
Ms. Linda Bergkamp
Phone: +1 (480) 614-3004
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SOURCE Yirendai Ltd.