CHINA Everbright Water has issued its first tranche of medium-term notes (MTNs) for 2025 with a principal amount of 1.5 billion yuan (S$279.6 million) and a 1.78 per cent coupon rate.
In a filing on Wednesday (Jan 8), the dual-listed environmental services group said that the first tranche of the 2025 MTNs 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.
This has “set a record low interest rate for all the panda bonds with a three-year maturity period issued in the market”, said the company.
It noted that the latest MTN exercise was fully subscribed at a rate of 3.52 times by institutional investors at China’s national inter-bank bond market.
This “underscores the market’s continued confidence and support in (the company’s) growth prospects”, added China Everbright.
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Proceeds from the first tranche of 2025 MTNs will be used to replenish working capital of the company. 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. China Merchants Bank, China Zheshang Bank, Industrial Bank, Bank of Ningbo and China Bohai Bank were the joint lead underwriters.
In December 2024, the company completed the registration of multiple types of debt financing instruments in a principal amount of eight billion yuan. It received approval to issue these instruments in multiple tranches to institutional investors, in the form of super short-term commercial papers, medium-term notes, perpetual notes and more.
The company also said that it will “strengthen its financing portfolio” through a range of short and long-term instruments, to provide “stable and flexible capital support” for its operations and development.
Shares of China Everbright closed flat at S$0.245 on Wednesday, before the announcement.
