Singapore and Hong Kong, 8 January 2024 – China Everbright Water Limited (“Everbright Water” or the “Company”; stock codes: U9E.SG and 1857.HK) (中國光大水務有限公司), an environmental protection company focusing on water environment management, announces that the Company has completed the issuance of the 2024 first tranche medium term notes (“MTNs”) (the “2024 First Tranche MTNs”), which was fully subscribed for by institutional investors in the national inter-bank bond market of mainland China (the “Institutional Investors”). This again reflects the market’s confidence in the Company’s sound development.
The 2024 First Tranche MTNs has a principal amount of RMB1.5 billion, with a maturity period of 5 years (with an interest rate adjustment option to be exercised by the Company and a resale option to be exercised by the noteholders at the end of the third interest-bearing year), an interest rate of 2.80%, and a subscription rate of 3.07 times. The proceeds from the MTNs issuance will be used to replenish the working capital of Everbright Water’s subsidiaries and repay the interest-bearing debts of the Company or its subsidiaries. The 2024 First Tranche MTNs and Everbright Water (as the issuer) had each been given a credit rating of “AAA” by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. Everbright Securities Company Limited acted as the lead underwriter and bookrunner of the 2024 First Tranche MTNs issuance. Bank of China Limited, Shanghai Pudong Development Bank Co., Ltd., Postal Savings Bank of China Co., Ltd., Industrial Bank Co., Ltd., and China Zheshang Bank Co., Ltd. acted as the joint lead underwriters.
In March 2023, Everbright Water received a notice of registration acceptance from the National Association of Financial Market Institutional Investors of the People’s Republic of China (中國銀行間市場交易商協會) in relation to the issuance of MTNs in multiple tranches to the Institutional Investors, with a registered principal amount of RMB5 billion. In 2023, Everbright Water issued three tranches of the MTNs, which have an aggregate principal amount of RMB3.5 billion, with each tranche of the MTNs having a maturity period of 5 years (with an interest rate adjustment option to be exercised by the Company and a resale option to be exercised by the noteholders at the end of the third interest-bearing year). The three tranches of MTNs issued in 2023 have an interest rate of 3.20%, 2.97% and 2.82% respectively, with a subscription rate of 2.37 times, 2.25 times and 2.88 times.
Looking back, the issuances of MTNs in four tranches by Everbright Water since 2023 have continuously set a record low interest rate. This represents the Company’s deep understanding of the market and its ability to seize the appropriate windows for issuance, thereby keeping its financing costs within a reasonable range and further improving the financing structure of the Company. Embarking on this new year with a new landscape, new opportunities and new challenges, Everbright Water will continue to carry out relevant work in a prudent manner and further solidify and diversify its financing channels. By consistently providing reliable and flexible capital support to the Company’s operations and development, Everbright Water aims to steadily realise its development vision of creating value to industries through various water-related businesses.
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