China Water Affairs Successfully Launched RMB 1 Billion AA-Rated Blue Bonds

With Unconditionaland Irrevocable Guarantee from Supranational Institution CGIF

TheIssue Received Overwhelming Market Response

(22 January 2025, Hong Kong) China Water Affairs Group Limited (“China Water Affairs” or the “Company”; stock code: 0855.HK) is pleased toannounce that the Company has issued RMB 1 billion 5-year AA-rated guaranteed blue bonds with coupon rate of 3.45% to certaininstitutional investors. The proceeds raised will be fully used for refinancing.The bonds are unconditionally and irrevocably guaranteed by the supranational institutionCredit Guarantee Investment Facility (“CGIF”). While the bond issue was substantially oversubscribed, all subscribers were famousinvestment funds, including sovereign funds, insurance funds, fund investorsand banking institutions. Subscription from sovereign funds accounted for 40%of total subscription.

The lead joint global coordinators for the bond issue are Morgan Stanley,CICC and Barclays, and the joint global coordinator, joint book-runners andjoint lead managers are HSBC and China CITIC Bank International. Applicationhas been made to the Singapore Exchange Securities Trading Limited (“SGX-ST”)for their listing on the SGX-ST.

China Water Affairs will utilize the proceeds raised through the green& blue finance framework to refinance the eligible green projects.

The bond guarantor CGIF, a trust fund of the Asian Development Bank (ADB) and a supranational institution, is assigned AA guarantor rating with “stable” outlook by international credit rating agencyS&P Global Ratings. The Company hasgained trust and support from ADB for years. In addition to offering financing support to the Company's business development, the organization also presented the ADB “WaterResilience Award” to the Company at the first "Asian Development BankImpact Awards" presentation ceremony in 2022. The unconditional andirrevocable guarantee made by the supranationalinstitution CGIF to the blue bond issuance reaffirms their highrecognition of the Company’s business development, management team and trackrecords.

Being the Company’s maidenissuance of AA-rated investment grade RMB dim sum bonds inoverseas market, the funding exercise not only enables it to reduce thefinance costs, but also allows it to avoid currency mismatch, obtain higher credit rating than the sovereign ratingin cross-border financing, expand the funding channels and tap into a widerinvestor base.

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About China Water Affairs Group Limited

China Water Affairs Group Limited is a leading professional, market-orientedand cross-region water supply operator in China and the only Hong Kong listedcompany focusing on water supply business. It is headquartered in Hong Kongwith two operations management centers in Beijing and Shenzhen respectively.The Group (including associated companies) is mainly engaged in urban watersupply, sewage treatment and drainage and other related value-added services inMainland China. Its services cover around 30 million people spread across over100 cities in 20 provinces and direct-administered municipalities. Withtotal handling capacity of over 20 million m³ / day, the Group has establisheda leading position in China’s water affairs market with full business model.All members of the Group’s management team are veteran professionals in thewater industry with sharp insight into related government policies. TheCompany’s shares were included in the first batch of securities eligible fortrading through the Shenzhen-Hong Kong Stock Connect in 2016 and the FTSEEnvironmental Opportunities Asia Pacific Index in 2009.

This press release is issued by PRChina Limited on behalf of China WaterAffairs Group Limited.

Investor and Media Enquiries

PRChina Limited

David Shiu / Rachel Chen

Tel: (852) 2522 1368 / (852) 2522 1838

Email: dshiu@prchina.com.hk / rchen@prchina.com.hk