Everbright Environment Issues 2022 Perpetual Medium-Term Notes (Series 1), Focusing on "Dual Carbons" Strategies to Facilitate Low-Carbon Transformation

21 April 2022, Hong Kong – China Everbright Environment Group Limited ("Everbright Environment" or the "Company") (SEHK: 257) successfully issued the 2022 perpetual medium-term notes (series 1) (carbon neutrality bond) (the "2022 First Tranche Perpetual MTNs"), with an issue size of RMB1.5 billion, a maturity period of 3+N years, and an interest rate of 3.47%. The 2022 First Tranche Perpetual MTNs were fully subscribed for by the institutional investors in the inter-bank bond market in the PRC (the "Institutional Investors"), with a subscription rate of 2.38 times. The 2022 First Tranche Perpetual MTNs mark China's first carbon neutrality-themed perpetual medium-term notes ("MTNs") issued by a foreign issuer and the country's first carbon neutrality-themed perpetual MTNs dedicated to the urban household waste-to-energy sector. The issuance also recorded the lowest interest rate among perpetual MTNs ever issued in China by foreign issuers, demonstrating that the Company's business strength and development potential have been recognised and trusted by the market.

The proceeds from the issuance of the 2022 First Tranche Perpetual MTNs will be used to repay loans granted to the Company's household waste-to-energy projects in China, which contribute to carbon reduction. Everbright Environment (as the issuer of the 2022 First Tranche Perpetual MTNs) and the 2022 First Tranche Perpetual MTNs had each been given a credit rating of "AAA" by China Lianhe Credit Rating Co., Ltd. The 2022 First Tranche Perpetual MTNs had also been given a green rating of "G1" by Lianhe Equator Environmental Impact Assessment Co., Ltd. Everbright Securities Company Limited acted as the lead underwriter and bookrunner of the issuance, and China Merchants Bank Co., Ltd. acted as the joint lead underwriter.

In March 2022, Everbright Environment received the notice of registration acceptance from the National Association of Financial Market Institutional Investors of the PRC ("NAFMII"), to issue perpetual MTNs in single or multiple tranches to the Institutional Investors in mainland China, with a registered principal amount of RMB6 billion.

The successful issuance of the 2022 First Tranche Perpetual MTNs demonstrates that Everbright Environment has been proactively following China's "Peaking Carbon Dioxide Emissions" and "Achieving Carbon Neutrality" ("Dual Carbons") strategic goals, and is moving steadily towards its development goals of "Becoming a Carbon-Negative Enterprise, Developing Zero-Carbon Plants, and Pursuing Low-Carbon Lifestyle". The Company has been making good progress in relevant practices and exploration based on its environmental protection business. As China's largest environmental enterprise and the world's largest waste-to-energy investor and operator, Everbright Environment has recently incorporated the climate into its development strategy and enriched its new development paradigm with a focus on four major areas, namely the environment, resources, energy and climate, as compared with is pre-existing focus on the three areas of the environment, resources and energy. By doing so, the Company expresses its concern for climate change and reiterates its determination to address related challenges. The successful issuance of the perpetual MTNs also reflects the practical measures taken by the Company to address climate change and demonstrates the Company's unwavering focus on the "Dual Carbons" areas.

Since last December, Everbright Environment and its listed subsidiaries – China Everbright Greentech Limited (1257.HK) and China Everbright Water Limited (U9E.SG and 1857.HK) – have applied to the NAFMII for the registration of the perpetual MTNs in an aggregate issue size of not exceeding RMB13 billion. The Company's upcoming work in relation to the perpetual MTNs issuance will help supplement the Company's liquidity, optimise the financing structure, manage and control capital costs, accumulate financing experience, and improve Everbright Environment's diversified financing strategy. Everbright Environment will also continue to monitor market dynamics, leverage proper market conditions, and carry out the issuance of the remaining perpetual MTNs in an orderly manner. At the same time, the Company will adhere to a diversified financing strategy, and continue to expand and optimise its portfolio of financing tools, in a bid to provide timely and sufficient financial support for the Company's business development and steady growth.