(3 November 2022, Hong Kong) China Water Affairs Group Limited (“China Water Affairs” or the “Company”; stock code: 0855.HK) is pleased to announce that the Company (as guarantor) and its wholly-owned subsidiary Silver Dragon Water Supply Group Limited (as borrower) have entered into a US$250 million equivalent five-year syndicated facilities agreement (the “Facilities Agreement”) with a greenshoe option of up to US$250 million equivalent. The amount raised is expected to be used for early prepayment of certain existing bank facilities of the Company.
The Board considers that the signing of the Facilities Agreement reflects China Water Affairs’ fund raising capacity in the syndicated loan market. The financing will enable the Company to optimise its debt structure and restructure its bank facilities according to the needs of its different business segments.
It is noteworthy that this funding exercise signifies the Company's initiative to optimize its balance sheet by replacing outstanding short-term debts with medium and long-term loans in advance. The Company's current ratio and quick ratio will thus be remarkably improved.
China CITIC Bank International Limited and The Bank of East Asia, Limited acted as the mandated lead arrangers, bookrunners and underwriters, and Bank of Communications (Hong Kong) Limited acted as the mandated lead arranger and bookrunner in respect of the Facilities.
China Water Affairs has maintained strong profitability and a sound financial position. Its revenue for FY 2021-22 increased by 25.2% YoY to HK$12.95 billion, and net profit grew by 11.8% YoY to HK$2,977 million.
About China Water Affairs Group Limited
This press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.
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