XPeng announced on Wednesday that it has raised 710 million yuan — equivalent to $99.8 million — through asset-backed securities (ABS) related to its car leasing business.
According to the Guangzhou-based carmaker, the raised funds “will be used to supplement working capital and support leasing business deployment.”
In 2022, XPeng issued its first two asset-backed securities financing initiatives, totaling 1.8 billion yuan ($253 million).
The first ABS was issued on the Shenzhen Stock Exchange, and the second on the Shanghai Stock Exchange.
This helped XPeng expand its financing channels across China’s two main stock markets.
However, this is the first ABS for new energy vehicle (NEV) financing leases with an off-balance-sheet.
The originator of the assets is XPeng‘s subsidiary, Guangzhou XPeng Auto Finance Leasing Co., Ltd.
The project does not involve external credit enhancement and is based on the credit quality of XPeng Leasing’s assets, which include the vehicles and the payments expected from customers in related leasing contracts.
The assets will be legally moved to a separate entity from XPeng, “achieving asset securitization without relying on the issuer’s credit enhancement.”
This allows XPeng to grow its electric vehicle leasing business and raise cash without taking on additional debt or increasing its reported liabilities.
Investors with the top-tier A-class tranche of the ABS, which has a AAA rating, offers investors an annual interest rate of 2.28%.
According to the Chinese automaker, the ABS issued on Wednesday earned a G1 green rating — indicating it fully meets strict environmental standards.
“The underlying asset pool is expected to reduce CO₂ emissions by 11,000 tons annually and save 5,200 tons of standard coal,” the company stated.
XPeng‘s US-listed shares are currently trading 0.8% higher at $21.36 on Wednesday’s pre-market session.
The stock doubled its value in the past twelve months, 79.3% of which has occurred since the beginning of 2025.
In Hong Kong, the stock lost -0.72% on Wednesday, closing at HK$83.30.
