Everbright Water Issues Asset-Backed Securities

Singapore and Hong Kong, 19 April 2024 - China Everbright Water Limited ("Everbright Water" or the "Company", stock codes: U9E.SG and 1857.HK) (中國光大水務有限公司), an environmental protection company focusing on water environment management, announces that the Company has today completed the issuance of asset-backed securities ("ABS") to qualified institutional investors in mainland China, with a principal amount of RMB2 billion and a subscription rate of 3.04 times. The proceeds from the ABS issuance will be used to repay the loans borrowed by the Company and its subsidiaries (the "Group") and replenish the Group's working capital.

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 subsidiary to receive waste water treatment service fees in connection with three waste water treatment projects located in Shandong Province. The issued ABS comprises preference ABS and subordinate ABS. The preference ABS has an issuance size of RMB1.9 billion and is classified into seven classes, with maturity periods ranging from approximately one to nine years. The composite interest rate is 2.67% per annum, with an "AAAsf" credit rating evaluated by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. The subordinate ABS has an issuance size of RMB100 million and is issued to Everbright Water (Shenzhen) Limited. Orient Minerva Asset Management Co., Ltd. acts as the manager of the ABS scheme.

This issuance of ABS by Everbright Water signifies its second foray into this particular type of bond, subsequent to its initial ABS issuance in 2020. This ABS issuance allows the Group to revitalise existing assets and solidify diverse financing channels, which helps optimise the Group's financing structure, maintain its financial cost at a reasonable level, and enhance the efficiency of capital utilisation. Moving forward, Everbright Water will remain vigilant in monitoring and exploring various financing channels, and make effective allocation of the proceeds, so as to provide solid financial support for the Group's sustainable development.

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