Leading global blockchain-based fintech company, Seven Stars Cloud Group Inc. (NASDAQ: SSC), has announced a ground-breaking $24-billion, three-year deal with National Transportation Capacity Co Ltd. (NTS) on August 20.
The said deal will provide fixed income, lease financing-based products which will fund the upgrades of the country’s buses, revamping them into electric buses by 2021 as mandated by the government.
In order to achieve fully-electric bus operations in China, the market size for the essential replacements and upgrades is estimated at 1 trillion RMB or $145 billion.
NTS is currently China’s biggest full-service operator for electric buses with sales, lease financing, a charging station network, and real-time data services which include media, payments, maps and facial recognition.
SSC Chairman and CEO Bruno Wu remarked:
“This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract. 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.”
As part of the deal, Seven Stars will provide two financing campaigns, one in China and the other across global markets. The campaign in China targets to raise 60 billion RMB or approximately $8.75 billion over the span of three years. Meanwhile, the global markets campaign will aim to build up $15 billion on the same duration.
Jihong Huang, President of National Transportation Capacity Co Ltd stated:
“We’re delighted to enter into this deal, which is historic in terms of fixed-income asset digitization.”
Huang also added that each of the leading ten bus manufacturers in China strongly back NTS in their initiative, and the success of the transaction with SSC will place asset-backed digital offerings firmly on the map.
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