China Everbright's proposed 3b yuan note issue gets regulatory nod

CHINA'S interbank market regulator has given the green light for China Everbright Water's proposed issuance of three billion yuan (S$600.9 million) worth of medium-term notes.

The mainboard-listed firm on Tuesday said it has received a notice of registration acceptance from the National Association of Financial Market Institutional Investors, which regulates medium-term notes, short-term commercial paper and private placement bonds in China's interbank market.

China Everbright is looking to issue the notes in single or multiple tranches to institutional investors in the interbank bond market in mainland China.

The registered principal amount of three billion yuan will be valid for two years from April 24, which is the date of the notice of registration acceptance.

China Everbright announced the potential deal in January, saying that the maturity of the notes will be no more than five years per tranche, while the coupon has not been decided. The first tranche's size will be 800 million yuan.

The company plans to use the proceeds to "replenish working capital within a reasonable time and allow the group to optimise its financing structure".

On Tuesday, China Everbright noted that the proposed issuance remains subject to prevailing market conditions, among other things. Accordingly, the company may or may not proceed with it.

China Everbright shares were trading flat at S$0.21 as at 9.13am on Tuesday.