19 Sep 2022
Everbright Water Issues Third Tranche of Super & Short-term Commercial PapersSingapore and Hong Kong, 19 September 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 third tranche of RMB-denominated Super & Short-term Commercial Papers (the "SCPs"). The third tranche of SCPs ("Third 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 180 days and an interest rate of 1.72%. The proceeds from the Third Tranche SCPs will be used to replenish working capital of Everbright Water's subsidiaries.
Everbright Water, as the issuer of the Third 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. acted as the lead underwriter and bookrunner, and Bank of Beijing Co., Ltd. acted as the joint lead underwriter of the Third Tranche SCPs.
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, with a principal amount of RMB800 million, a maturity term of 120 days and an interest rate of 2.4%. In January 2022, the Company completed the issuance of the second tranche of SCPs, with a principal amount of RMB1 billion, a maturity term of 150 days and an interest rate of 2.5%. The first and second tranches of SCPs were fully subscribed for by the Institutional Investors, and were used to replenish working capital of Everbright Water's subsidiaries. Additionally, the principal amounts and accrued interests thereof had been fully repaid.
Under the current domestic macro environment with reasonable liquidity, Everbright Water fully grasped the window period and carried out the issuance of the Third Tranche SCPs. Such issuance will replenish the Company's liquidity at a low financing cost. With its relevant experience in the issuance of the first three tranches of SCPs, the Group will be able to seize an appropriate window period to issue the remaining SCPs, thereby providing an effective capital support for the future development of the Company.