China Everbright Water Limited has announced it will issue medium term notes (MTNs) in single or multiple tranches to institutional investors in the inter-bank bond market in mainland China.

The MTNs have a registered principal amount of RMB3 billion ($590 million), with a validity period of two years from 24 April 2020. The Company has completed the issuance of the first tranche of MTNs. 

Everbright Water said the first tranche was fully subscribed for by the Institutional Investors and issued with a principal amount of RMB1 billion, a maturity period of 3 years, an interest rate of 3.60% and a subscription rate of 2.01 times. 

The company said the proceeds from the MTNs issuance will be used to replenish working capital of the Company’s subsidiaries. The first tranche of MTNs and Everbright Water had each been given a credit rating of “AAA” by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. Bank of China Limited.

Guosen Securities Co., Ltd. act as the underwriters of the First Tranche MTNs issuance. 

Mr. An Xuesong, Executive Director and CEO of Everbright Water, said, “The issuance of the First Tranche MTNs will not only allow Everbright Water to replenish working capital, but also help optimise its financing structure and keep its financial costs within a reasonable range.”

As at 11.12am, shares in China Everbright Water were trading flat at 24 cents.