China Everbright Water proposed on Wednesday issuing up to 700 million yuan worth of corporate bonds as the third tranche under its 2.5 billion yuan China yuan-denominated bond program.
The bonds will have a five-year maturity period from the date of issue, but bondholders will have the option to sell the bonds back to the company after three years, it said in a filing to SGX after the market close on Wednesday.
The interest rate will be determined via a book-building process by the underwriter, Everbright Securities, it said.
Proceeds will be used for general working capital by the company’s subsidiaries, with the new issuance to help the group manage its overall financial cost within a reasonable range, it said.
Both the third tranche of bonds and the company have been given a credit rating of AAA by independent agency Shanghai Brilliance Credit Rating & Investors Service, the filing said.
Any portion of the issuance that isn’t subscribed for by qualified investors will be picked up by Everbright Securities, which is considered an associate of China Everbright Water, it said.
China Everbright Water said it expected to list the bonds for trading on the Shanghai Stock Exchange, subject to approval from regulators.
The first tranche of bonds was issued on 25 July 2017 with a principal amount of 1 billion yuan, and the second tranche of 800 million yuan was issued on 17 August 2018, it said.