CHINA WATER (00855) successfully issued a 1 billion RMB AA investment-grade blue bond, with unconditional and irrevocable guarantee provided by the supranational institution CGIF. The market had a strong subscription.

On January 22, CHINA WATER (00855) happily announced that the company issued RMB 1 billion AA-rated secured blue bonds to several institutional investors, with a maturity of 5 years and a coupon rate of 3.45%. The proceeds from the fundraising will be used for refinancing purposes. The bonds are unconditionally and irrevocably guaranteed by the credit enhancement provider "Credit Guarantee and Investment Facility" (CGIF), a supranational organization. The bond issuance was significantly oversubscribed by the market, with subscriptions from well-known market investors including sovereign wealth funds, insurance funds, fund investors, and bank investors, with sovereign wealth funds accounting for 40%. The lead joint global coordinators for the bond issuance were Morgan Stanley, CICC, and Barclays, while the joint global coordinators, joint bookrunners, and joint lead managers were HSBC and CITIC Bank (International). The company has applied to list the bonds on the Singapore Exchange. The proceeds from the issuance of bonds under the green and blue financing framework by CHINA WATER will be used for refinancing eligible green projects. The guarantor for the bonds, CGIF, is a trust fund under the Asian Development Bank, which is a supranational organization. CGIF has been awarded an AA credit rating with a stable outlook by the international rating agency Standard & Poor's. Over the years, CHINA WATER has earned the trust and support of the Asian Development Bank, which not only provides financing support for the company's business development but also awarded the company the "Water Resilience Award" at the inaugural "Asian Development Bank Impact Awards" in 2022. CGIF's unconditional and irrevocable guarantee for the blue bonds issued by the company further demonstrates their high recognition and approval of the company's business, management team, and past performance. The issuance of RMB-denominated blue bonds by CHINA WATER, with an AA investment grade rating, marks the company's first issuance of dim sum bonds overseas. In addition to reducing financing costs and preventing currency mismatches, this issuance helps overcome the constraints of sovereign ratings in cross-border financing, broadens the company's financing channels, and expands its investor base.