Tianjin Capital approved for 1.2b yuan bond issue
H share Tianjin Capital Environmental Protection will seek to list its 1.2 billion yuan, five-year A-share convertible bond issue 'as soon as possible' after receiving approval from China's securities watchdog.
The company - the Tianjin municipal government's investment flagship in water and waste treatment - said it would apply for the listing on Thursday. It has waited two years for the chance to list.
The issue will provide the company with a much-needed war chest to expand its water-treatment portfolio.
The net proceeds - amounting to 1.1 billion yuan - would be used primarily in the construction of its Tianjin-based plants in the Xianyanglu, Jizhuangzi and Beicang districts.
The investments are aimed at capturing a slice of the nascent, but increasingly competitive water-treatment market as China deregulates the sector in accordance with its World Trade Organisation commitments.
Tianjin Capital said 620 million yuan would go towards the Xianyanglu project, 321 million yuan to the expansion of the Jizhuangzi facilities, and 149 million yuan to the construction of the Beicang plant. The three projects will be used to treat and reuse waste water.
The balance will be used to repay the group's bank loans.
