GMAC-SAIC Automotive Finance Co, a joint venture between General Motors Corp and China's largest automaker, Shanghai Automotive Industry Corp, said it plans to issue 1.9 billion yuan ($260.71 million) in bonds backed by car loans on the interbank money market on January 15.

In a statement posted on the official Chinabond website (www.chinabond.com.cn), the company said the bonds comprise 1.67 billion yuan Class A securities with an "AAA" rating and 235.23 million Class B rated "A".

The yield for the Class A and Class B will be set at 130-160 and 220-250 basis points above the one-year fixed deposit interest rate.

The one-year deposit rate currently stands at 4.14 percent.

The class A loans average 0.84 years' remaining duration, while the class B loans average 2.14 years. Some 92.1 million yuan worth of subordinated bonds are to be sold back to GMAC-SAIC Automotive Finance.

The trustee and issuer of the securities is Fortune Trust Co Ltd, with CITIC Securities the main underwriter.

GMAC-SAIC Automotive Finance is the first auto-finance firm in China to securitize its loans.