China Everbright Water issues 1.5 billion yuan worth of five-year notes at 2.97% interest

ENVIRONMENTAL services company China Everbright Water has issued 1.5 billion yuan (S$276.8 million) worth of five-year medium-term notes at 2.97 per cent interest.

The notes have a maturity period of five years, with an interest rate adjustment option to be exercised by the company and a resale option to be exercised by the noteholders at the end of the third interest-bearing year. They have a subscription rate of 2.25 times.

They were fully subscribed for by institutional investors in the national interbank bond market of mainland China, the company said.

These notes are the second tranche of notes issued by China Everbright Water, following a first tranche of 1.5 billion yuan five-year notes issued in April 2023. The first tranche of notes has an interest rate of 3.20 per cent, and a subscription rate of 2.37 times.

Proceeds from the notes issuance will be used to replenish the working capital of China Everbright Water’s subsidiaries and repay the interest-bearing debts of the company or its subsidiaries. This will provide “good capital security for the company’s steady development in a challenging industry and market environment”, it said.

Everbright Securities Company was lead underwriter and bookrunner of the issuance of this second tranche of notes.

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Shares of China Everbright Water closed at S$0.215 on Monday, up S$0.005 or 2.4 per cent, before the announcement.