China Everbright issues 2024 first tranche medium-term notes at 2.8%; to repay 2021 notes

CHINA Everbright Water : U9E 0% has issued its first tranche of medium-term notes (MTN) for 2024 with a principal amount of 1.5 billion yuan (S$285.1 million) and a 2.8 per cent coupon rate.

Separately, the environmental protection company also announced on Monday (Jan 8) that it would repay all its outstanding 2021 first tranche MTNs at their principal amount of one billion yuan, plus accrued interest, at the maturity date which falls on Jan 15, 2024.

The first tranche of the 2024 MTN notes comes with a maturity period of five years. It includes an interest rate option to be exercised by the company, and a resale option to be exercised by noteholders at the end of the third interest-bearing year. 

Earlier tranches of MTNs issued by the company in 2023 bore interest rates ranging from 2.82 to 3.2 per cent.

Including the latest first tranche issuance of the 2024 MTNs, this demonstrated that China Everbright’s issuances of MTNs since 2023 have “continuously set a record low interest rate”, it added.  

China Everbright said the latest MTN exercise was fully subscribed at a rate of 3.07 times by institutional investors at China’s national inter-bank bond market.

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This “reflects the market’s confidence in the company’s sound development”, added the company, which focuses on water environment management. 

Proceeds from the first tranche of 2024 MTNs will be used to replenish working capital of the group’s subsidiaries, and to repay interest-bearing debts of China Everbright and its subsidiaries.

The notes have been given an “AAA” credit rating by Shanghai Brilliance Credit Rating & Investors Service.

Everbright Securities Company acted as the deal’s lead underwriter and bookrunner.

Bank of China, Shanghai Pudong Development Bank, Postal Savings Bank of China, Industrial Bank and China Zheshang Bank were the joint lead underwriters.

Shares of China Everbright were down S$0.005 or 2.3 per cent at S$0.215 as at 1.25 pm on Monday, after the news.