Sanli Environmental Launches S\$3-5 Million Series 002 Commercial Paper on ADDX Platform

Key Highlights

• Sanli Environmental Limited has announced the launch of its second series of unsecured 6-month commercial paper, Series 002, with a target issuance size of S\$3.0 million, and the potential to raise up to S\$5.0 million.
• The commercial paper will carry an interest rate of 5.5% per annum and will mature six months from the date of issuance.
• The issuance is part of the company’s ongoing debt issuance programme arranged by ADDX Pte. Ltd., a platform regulated by the Monetary Authority of Singapore.
• Investors targeted are accredited and institutional investors, with the papers expected to be listed on the ADDX Exchange.
• Proceeds from the issuance will be used to support working capital requirements for newly secured projects, including banker’s guarantees, project mobilisation, and other operational needs.

Details for Investors and Shareholders

Sanli Environmental Limited continues to demonstrate active capital management with the launch of its 6-month unsecured commercial paper, Series 002. The company has authorised the issuance of up to S\$5 million of commercial paper, with a target size of S\$3 million for this tranche. Notably, the Board retains the sole and absolute discretion to vary the amount, allowing flexibility to respond to investor demand and the company’s capital needs.

The commercial paper will offer an attractive 5.5% annual interest rate over the 6-month term, presenting institutional and accredited investors a short-term fixed income opportunity. This initiative follows several earlier announcements and is part of Sanli’s broader strategy to leverage the ADDX digital securities platform for efficient capital raising.

Importantly, the net proceeds are earmarked to support working capital for newly secured projects. Specifically, funds will be allocated to the provision of banker’s guarantees, project mobilisation, and related operational needs. These are critical areas for the business, indicating a robust pipeline of new projects and reinforcing Sanli’s growth trajectory.

The company has stated that it will make further announcements if and when there are material developments related to the Series 002 commercial paper issuance.

Potential Impact on Shareholders and Share Price

• Price-Sensitive Information: The successful issuance and deployment of these funds will support the company’s ability to execute on new contracts and projects, potentially accelerating revenue and profit growth. This may be viewed positively by the market and could impact the company’s share price.
• Flexibility in Fundraising: The Board’s discretion to vary the issuance size up to S\$5 million provides Sanli with flexibility to respond to demand and operational requirements, which could further strengthen its balance sheet and support long-term growth.
• Ongoing Disclosure: Shareholders should monitor for subsequent announcements regarding material developments or changes in the issuance, as these could influence market perception and valuation.
• Regulatory Oversight: The involvement of ADDX, regulated by the Monetary Authority of Singapore, underscores the credibility and transparency of the programme, which may further bolster investor confidence.

Corporate Governance and Oversight

The announcement has been reviewed by the company’s sponsor, SAC Capital Private Limited. The Singapore Exchange Securities Trading Limited (SGX-ST) has not examined or approved the contents of the announcement and assumes no responsibility for its accuracy.

The company’s CEO and Executive Director, Sim Hock Heng, has authorised the announcement, highlighting the strategic importance of this capital raising exercise for Sanli’s ongoing business development and operational needs.

Conclusion

This development is significant for shareholders and investors, reflecting Sanli Environmental’s commitment to capital efficiency and operational readiness for new projects. The market will be watching closely for the actual amount raised, investor appetite for the issuance, and the speed with which these funds translate into new business and revenue streams.

Disclaimer: This article is for informational purposes only and does not constitute an offer or recommendation to buy or sell any securities. Investors should consult their own professional advisors for legal, financial, or tax advice. The Singapore Exchange Securities Trading Limited assumes no responsibility for the content of this report.

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