Everbright Water issues $59m worth of asset-backed securities

Proceeds will be used to replenish working capital of the company and its subsidiaries.

Environmental protection company China Everbright Water Limited has issued $59m (RMB300m) of asset-backed securities to qualified investors in mainland China, according to an announcement.

Proceeds from the issuance are said to be used to replenish working capital of the company and its subsidiaries.

The issued securities comprise preference and subordinate securities. The preference securities have an issuance size of $56.04m (RMB285m), maturity periods of approximately one to five years, and a composite interest rate of 3.54% per annum. It also has an AAA credit rating by Shanghai Brilliance Credit Rating & Investors Service.

In relation, Everbright Water’s wholly-owned subsidiary Everbright Water (Shenzhen) Limited will be the original beneficiary. The underlying assets will be the rights of Everbright Water’s subsidiaries to receive wastewater treatment service fees, in connection with four wastewater treatment projects located in Liaoning Province.

The subordinate securities have an issuance size of $2.95m (RMB15m) and were issued to Everbright Water (Shenzhen) Limited.

Orient Minerva Asset Management will act as the manager of the scheme.