The environmental firm raises S$285.1 million with AAA-rated notes, setting a record low interest rate

China Everbright Water (U9E 0%) successfully issued its first tranche of medium-term notes (MTNs) for the year, totaling 1.5 billion yuan (S$285.1 million) with a coupon rate of 2.8%. The notes are rated “AAA” by Shanghai Brilliance Credit Rating & Investors Service. The five-year MTNs include an interest rate option for the company and a resale option for noteholders at the end of the third interest-bearing year.

This issuance is part of China Everbright’s strategy to maintain competitive financing conditions, as the company also announced plans to repay its 2021 first tranche MTNs amounting to one billion yuan, due on January 15, 2024. The interest rates for previous MTN tranches issued by the company in 2023 ranged from 2.82% to 3.2%. The latest issuance further demonstrates China Everbright’s ability to secure financing at record-low interest rates, as the MTNs were 3.07 times oversubscribed by institutional investors in China’s national inter-bank bond market.