Per a press release published on August 20, Seven Stars Cloud Group, a NASDAQ enlisted technology enterprise has inked a whopping $24 billion deal with National Transportation Capacity Co. Ltd. to foster electric buses upgrade in China. Planned upgrade will be achieved through the application of blockchain technology provided by SSC Group.
Terms of the Deal
The need for such a high-scale upgrade in public transportation stems from the Chinese government’s regulation that mandates all existing buses to be replaced by electric buses by 2021. The target year is also the reason why the contract between the two parties is slated to last for a duration of 3 years.
Finances for the upgrade will be derived through lease financing fixed income products based on SSC’s blockchain platform. NTS is the leading full-service operator for electric buses in China, and the total market size for upgrades and replacements in existing buses is estimated to be around $145 billion.
According to the terms laid down in the deal, SSC will provide two separate financing campaigns through its global strategic alliance network. One campaign is to be based out of China, while the second campaign will be across the rest of the world, i.e. global markets.
The contract also singles out the finance specifics for both the campaigns, as the China based campaign will raise funds via sale of fixed income products to raise $8.75 billion. The global markets campaign will see SSC offer fixed income and asset digitization products with a target to raise $5 billion annually for three years.
“Historic” Deal for the Parties Involved
The defining deal is viewed in high regard by both the firms involved.
Bruno Wu, Chairman and CEO of SSC views the deal as “ground-breaking” for an upcoming technology like blockhchain. It is one of the grandest contractual deals to happen involving blockchain, and will give tremendous exposure to blockchain’s potential and scalability to the mass.
Jihong Huang, President of National Transportation Capacity shared the positive sentiments concerning the contract.
“A combination of SSC’s Blockchain and AI technologies, combined with our shared mission for unlocking both liquidity and enterprise value through asset digitization, will result in a significant transformation of the entire lease financing-based fixed income market.”
Chinese populace seems to be invested heavily in blockchain based solutions, as recently the city of Nanjing announced a massive fund of $1.5 billion dollars for blockchain infrastructure development. The technology is said to be highly malleable and can impart a great deal of transparency and efficiency to public administrative services.