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China Everbright Water cancels proposed 1.2b yuan notes issue on 'volatile' market conditions
MAINBOARD-LISTED China Everbright Water has cancelled a proposed 1.2 billion yuan (S$235.5 million) first tranche issuance of medium-term notes in light of "recent volatile conditions" in the Chinese bond market, it said in a bourse filing on Tuesday night.
It added that the move was to control financing costs.
A spokesperson for the company told The Business Times that it will continue to monitor market conditions, and proceed with the notes issuance "according to the market environment in the future".
Last week, China Everbright Water had announced plans to issue the first tranche of notes with a five-year maturity, on or around June 8. It was looking to issue the notes to institutional investors in the Chinese interbank bond market.
The notes had been given an AAA rating by the Shanghai Brilliance Credit Rating & Investors Service, and were to be part of a proposed three billion yuan issuance. China Everbright Water's registration of the notes was accepted by the Chinese interbank market regulator in April.
The company said in January - when it first proposed the issuance of the medium-term notes - that the fixed coupon rate would be determined by the company and underwriters pursuant to a centralised book-building process.
Shares of China Everbright Water finished Tuesday at S$0.23, down S$0.01 or 4.2 per cent.