News Release
17 Jun 2020

Everbright Water Issues First Asset-Backed Securities

Singapore and Hong Kong, 17 June 2020 – China Everbright Water Limited ("Everbright Water" or the "Company", stock codes: U9E.SG and 1857.HK) (中国光大水务有限公司), an environmental protection company focusing on water environment management, is pleased to announce that the Company has today issued asset-backed securities ("ABS") to qualified investors in the mainland China with a size of issue of RMB300 million. The proceeds from the ABS issuance will be used to replenish working capital of the Company and its subsidiaries.

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 ABS has an issuance size of RMB285 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 RMB15 million and was issued to Everbright Water (Shenzhen) Limited. Orient Minerva Asset Management Co., Ltd. acts as the manager of the ABS scheme.

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's financing 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.