Everbright Environment Issues First Tranche of Medium-Term Notes (Bond Connect) in China

16 June 2021, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company", stock code 257.HK), is pleased to announce that the Company received the notice of registration acceptance in April 2021 from the National Association of Financial Market Institutional Investors of the People’s Republic of China to issue medium-term notes ("MTN") in single or multiple tranches to institutional investors in the national inter-bank bond market in mainland China ("Institutional Investors"). The MTN has a registered principal amount of RMB4 billion (equivalent to approximately HKD4.8 billion), with a validity period of 2 years from 25 April 2021. The Company completed the issuance of the 2021 MTN (series 1) (bond connect) ("First Tranche MTN") on 11 June 2021. The First Tranche MTN was subscribed for by the Institutional Investors, with a subscription rate of 2.2 times.

The First Tranche MTN has a principal amount of RMB2 billion, a maturity period of 3 years, and an interest rate of 3.60% per annum. The proceeds from the MTN issuance will be used for replenishment of daily working capital for the Company’s subsidiaries and repayment of bank borrowings. Everbright Securities Company Limited acted as the lead underwriter and China Minsheng Banking Corp., Ltd. acted as the joint lead underwriter for the issuance of the First Tranche MTN.

The successful issuance of Everbright Environment’s First Tranche MTN is expected to help replenish working capital of the Company within a reasonable time, further diversify its financing channels, optimise its financing structure, and manage its financial cost within a reasonable range. Everbright Environment will make proper use of the proceeds according to daily operational and management needs of the Company’s subsidiaries. In the meantime, it will closely monitor market conditions and develop a proper timetable for the issuance of the remaining tranche(s) of MTN, so as to better facilitate the Company’s development. It will contribute to green and low-carbon initiatives, as well as sustainable development, through offering of better and comprehensive environmental services.