China Everbright Water has issued the first tranche of medium-term notes (MTNs) amounting to 1 billion yuan (US$143.59 million), the company says in a statement. The notes, with a maturity period of three years, an interest rate of 3.60% and a subscription rate of 2.01 times, have been fully subscribed. The proceeds will be used to replenish the working capital of the company’s subsidiaries.

The first tranche is part of the environmental management firm’s MTN programme totalling 3 billion yuan, with a validity period of two years from April 24 2020.  The company has received a notice of registration acceptance from the National Association of Financial Market Institutional Investors of China to issue the MTNs in single or multiple tranches in the country’s interbank bond market.

Shanghai Brilliance Credit Rating & Investors Service has given the first tranche and the issuer a credit rating of “AAA”. Bank of China and Guosen Securities were the underwriters of the issuance.

“Following the issuance of the company’s first asset-backed securities in June 2020, the completion of the issuance of the first tranche MTNs helps further diversify the financing channels and enrich the relevant experience of the company,” executive director and CEO An Xuesong says. “The issuance of the first tranche MTNs will not only allow Everbright Water to replenish working capital, but also help optimize its financing structure and keep its financial costs within a reasonable range.”

He said the company will issue the remaining tranches of MTNs according to capital demands and market conditions.