HONG KONG: China Everbright Water Limited, an environmental protection company focusing on water environment management, has issued asset-backed securities (ABS) to qualified investors in the mainland China with a size of issue of RMB 300 million.

In relation to the ABS issuance, Everbright Water’s wholly-owned subsidiary Everbright Water (Shenzhen) Limited is the original beneficiary, and the underlying assets are the rights of Everbright Water’s subsidiaries to receive waste water treatment service fees in connection with four waste water treatment projects located in Liaoning Province. The issued ABS comprises preference ABS and subordinate ABS.

The preference asset-backed securities (ABS) has an issuance size of RMB 285 million, maturity periods of approximately one to five years, and a composite interest rate of 3.54% per annum, with an “AAA” credit rating by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.

The subordinate ABS has an issuance size of RMB 15 million and was issued to Everbright Water (Shenzhen) Limited. Orient Minerva Asset Management Co., Ltd. acts as the manager of the ABS scheme.

Mr. An Xuesong, Executive Director and CEO of Everbright Water, said, “Everbright Water’s first ABS issuance marks another important progress achieved by the Company in terms of diversifying its financing channels, following the completion of its first panda bonds issuance last year.

The ABS issuance also demonstrates the Company’s good-quality project assets, excellent operating proficiency and strong financing capability.

The issuance of the ABS will help further optimise the Company’sfinancing structure, strengthen its ability of capital management, and control its financial cost within a reasonable range. In the future, Everbright Water will continue proactively paying attention to and exploring various financing channels, and make efficient use of the funds raised, so as to provide adequate financial support to safeguard the Company’s development.”

China Everbright Water Limited is an environmental protection company focusing on water environment management. The Company is listed on the Mainboard of the Singapore Exchange Securities Trading Limited and the Main Board of The Stock Exchange of Hong Kong Limited with its direct controlling shareholder being China Everbright International Limited.