RMB. Photo: iStock

The first “Belt and Road” asset-backed securities (ABS) have been approved by the Shanghai Stock Exchange, Chinese financial news outlet Caixin reports, in another sign of support for the international infrastructure investment and trade initiative.

The US$867 million security, issued by Sinar Mas Paper (China) Investment Co, will be used to finance production lines of the paper producer in the coastal province of Jiangsu. The company imports raw and auxiliary materials from, and exports paper products to, countries along Belt and Road Initiative (BRI) routes, including Egypt, India and Turkey, the report said.

The first such approval paves the way for more such deals which would broaden the types of bonds that can be used to finance Belt and Road projects. China’s securities regulator has asked the country’s two main exchanges to support bond issuances to fund BRI. Seven companies have already been given approval to issue such bonds.