China Everbright Water has issued the first tranche of yuan-denominated super & short-term commercial papers (SCPs), which were fully subscribed by institutional investors in China’s national inter-bank bond market, the company said in a filing to SGX Tuesday.
The SCPs had a principal amount of 800 million yuan, a maturity term of 120 days and an interest rate of 2.4 percent, the water treatment player said.
The proceeds will be used to replenish working capital at the company’s subsidiaries, China Everbright Water said.
“The issuance of the first tranche SCPs marks the company’s attempts in diversifying its financing channels, which helps further optimise its financing structure and keep its financial costs within a reasonable range,” An Xuesong, executive director and CEO of China Everbright Water, said in the statement. An said the issuance received a positive response from the market.
“In the future, Everbright Water will continue building up relevant experience and continuously explore new financing channels. It will make efficient use of resources from the capital market according to the company’s development pace and needs, to offer long-term and strong capital security for the future development,” An added.
Everbright Water said Shanghai Brilliance Credit Rating & Investors Service gave the first tranche of SCPs a credit rating of AAA.
China Bohai Bank acted as the lead underwriter and bookrunner, while Bank of Ningbo acted as joint lead underwriter, the filing said.
In March, China Everbright Water received approval from China’s National Association of Financial Market Institutional Investors to issue yuan-denominated SCPs in single or multiple tranches to institutional investors, with a registered principal amount of 2.5 billion yuan and a maturity term of not more than 270 days for each tranche.