CEI Water II

completed

China Everbright Water Limited (“CEWL”) (formerly: HanKore Environment Tech Group Ltd. “HanKore”), is incorporated in Bermuda and listed on the main board of the Singapore Stock Exchange (SGX U9E). CEWL focuses on water and environmental protection industries in China. On Jun 2014 China Everbright Water Holdings Limited (“CEWHL”) entered into a conditional sale and purchase agreement with HanKore to sell the entire issued and paid-up capital of China Everbright Water Investment Limited (CEWIL) to HanKore for a total consideration of RMB5.81 billion (approx. US$94.6 million). The transaction was closed on December 12 2014, and the enlarged HanKore was renamed to CEWL. After the completion of this acquisition, CEWL engaged with strategic investors including IFC and proposed to issue common shares through private placement to support its restructuring and future growth plans.China Everbright has been operating in the water sector in China since 2004. The company has built up a portfolio of twenty-five (25) strategic assets with a total contracted capacity of over 2.2 million m3/day which will serve a future population of 11.1 million residential users. Their assets include eighteen (18) wastewater treatment plants, four (4) water reuse treatment plants, one (1) surface water treatment plant and two (2) waste heat pump projects. Since the previous appraisal in 2012, several plants in construction were completed and placed into operation, increasing existing operational capacity from 1.62 million m3/day to 1.96 million m3/day. Four new assets have been added to the portfolio including Dezhou Nanyunhe WWTP II, Zhangqiu WWTP, Lingxian WWT Plant 1 upgrade, and Binzhou Boxing WWTP II. The acquisition of Hankore will add eleven (11) wastewater treatment plant assets with a contracted capacity of 1.76 million m3/day and a current operational capacity of 0.8 million m3/day. This will bring CEI’s total contracted capacity to over 4 million m3/day, bringing the company into the top five for wastewater treatment in China.IFC proposes to support CEWL’s growth plans in the water, water re-use, and sewage treatment sector in China. The total amount of common shares issued by CEWL through this private placement is US$85 million, and IFC’s equity subscription is US$35 million.