By Mary-Katherine Stinson
Lexington, Ky., May 25 – Beijing Enterprises Water Group Ltd. issued RMB 1 billion of series 2 medium-term notes on May 24, according to a notice Thursday.
Initially, the notes will bear interest at 3.03% for the first two years.
The coupon rate will reset every two years thereafter.
The company may elect to redeem the notes at par plus accrued interest including all deferred interest and interest accrued, if any, on the first reset date, which is two years from issuance, and on every subsequent interest payment date.
The notes will continue to have a two-year term until redemption.
As previously reported, there will be a change-of-control put option included, tied to parent company Beijing Enterprises Group Co., Ltd. It will be triggered if the parent’s ownership of the company dips below 35% or the parent ceases to supervise the company, ceases to be the major shareholder or its nominees cease to be the majority on the company’s board of directors.
Proceeds will be used to repay existing loans.
As previously reported on May 19, the company applied for and received approval to register up to RMB 5 billion of medium-term notes with the National Association of Financial Market Institutional Investors.
Beijing Enterprises provides a broad range of water services and environmental protection services in China. The company is based in Hong Kong.
| Issuer: | Beijing Enterprises Water Group Ltd.
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| Amount: | RMB 1 billion
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| Issue: | Medium-term notes, series 2
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| Coupon: | 3.03% initially; resets after two years and then every two years
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| Call features: | At par on the first reset date; on every subsequent interest date
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| Change of control: | Yes
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| Settlement date: | May 24
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