News Release
13 Jun 2022

Everbright Water Issues First Tranche Perpetual Medium Term Notes

Singapore and Hong Kong, 13 June 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 first tranche of perpetual medium term notes ("Perpetuals") (the "First Tranche Perpetuals") to institutional investors (the "Institutional Investors") in the national inter-bank bond market of mainland China, with a principal amount of RMB700 million, a maturity term of 3+N years and an interest rate of 3.30%. The First Tranche Perpetuals were fully subscribed for by the Institutional Investors with a subscription rate of 2.36 times, once again demonstrating the capital market's full confidence in the Company's development prospects.

The proceeds from the issuance of the First Tranche Perpetuals will be used to repay the due debts of Everbright Water and its subsidiaries. The First Tranche Perpetuals and the Company (as the issuer of the First Tranche Perpetuals) have 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 issuance, and China CITIC Bank Corporation Limited acted as the joint lead underwriter.

In March 2022, Everbright Water received a notice of registration acceptance from the National Association of Financial Market Institutional Investors of the People's Republic of China, to issue the Perpetuals in multiple tranches to the Institutional Investors in the national inter-bank bond market of mainland China, with a registered principal amount of RMB3 billion.

The successful issuance of the First Tranche Perpetuals is another step that the Company takes to diversify its financing channels, following its issuance of corporate bonds, asset-backed securities, medium-term notes, and super and short-term commercial papers in recent years. The smooth issuance of the First Tranche Perpetuals reflects the Company's active exploration of equity-based financing, which helps the Company reduce gearing ratio, improve liquidity, and optimise capital structure. It will also facilitate the Company to utilise a variety of financing tools and keep its financing cost within a reasonable range. Going forward, Everbright Water will continue monitoring market conditions closely to arrange for issuance of the remaining Perpetuals, in order to provide stable and flexible capital support for the Company's innovation-oriented and high-quality development.