13 Jan 2022
Everbright Water Issues Second Tranche of Super & Short-term Commercial Papers
Singapore and Hong Kong, 13 January 2022 – 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, is pleased to announce that the Company has completed the issuance of the second tranche of RMB-denominated Super & Short-term Commercial Papers (the "SCPs"). The second tranche of SCPs ("Second Tranche SCPs") were fully subscribed for by institutional investors in the national inter-bank bond market of mainland China ("Institutional Investors"), with a principal amount of RMB1 billion, a maturity term of 150 days and an interest rate of 2.5%. The proceeds from the Second Tranche SCPs issuance will be used to replenish working capital of the Company’s subsidiaries.
Everbright Water, as the issuer of the Second Tranche SCPs, has been given a credit rating of "AAA" by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. Meanwhile, China Bohai Bank Co., Ltd. acts as the lead underwriter and bookrunner of the Second Tranche SCPs issuance, and Bank of Ningbo Co., Ltd. acts as the joint lead underwriter.
Everbright Water received the notice of registration acceptance in March 2021 from the National Association of Financial Market Institutional Investors of the People’s Republic of China, to issue RMB-denominated SCPs in single or multiple tranches to the Institutional Investors. The SCPs have a registered principal amount of RMB2.5 billion, with a maturity term not more than 270 days for each tranche. In August 2021, the Company completed the issuance of the first tranche of SCPs ("First Tranche SCPs"), which were fully subscribed for by the Institutional Investors, with a principal amount of RMB800 million, a maturity term of 120 days and an interest rate of 2.4%. The proceeds from the First Tranche SCPs issuance were used to replenish working capital of the Company’s subsidiaries.
The issuance of the Second Tranche SCPs reiterates that Everbright Water has a good credit rating and excellent liquidity management capability. The SCPs issuance has effectively improved the Company’s liquidity. In addition, it helped the Company further solidify its diversified financing tools with various long- and short-term financing channels. Moving forward, Everbright Water will continue closely monitoring the changes in market trend and issue the remaining SCPs, as and when appropriate, to provide flexible and reliable capital for the Company's operation and development.