Sembcorp prices S$400m green bonds due 2031 at 2.45%

SEMBCORP Industries has priced its inaugural S$400 million green bond offering through its wholly-owned subsidiary Sembcorp Financial Services (SFS).

Due 2031, the bonds will be issued on June 9, 2021 at a coupon rate of 2.45 per cent per annum, payable semi-annual in arrears and comprising Series 001 notes under the S$3 billion multicurrency debt issuance programme established by Sembcorp and SFS.

Payment obligations of SFS under the green bonds, which are expected to be listed on the Singapore Exchange, will be guaranteed by Sembcorp.

In a late-night filing on Wednesday, Sembcorp said its offering was "competitively priced" with more than 90 per cent of the green bonds placed to institutional investors predominantly in the Asia-Pacific region, with some participation from Europe.

Net proceeds of the issuance will be used to finance or refinance projects under the list of eligible green projects under the group's green finance framework, and that meet Climate Bonds Initiative (CBI) sector-specific technical criteria.

The group added that this will be the first certified green bond under CBI's Climate Bonds Standard by a Singapore-based energy company.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

DBS and UOB acted as joint lead managers for the deal, while OCBC was green finance adviser in the preparation of the framework.

EY has assured the green bonds' conformance with pre-issuance requirements of the Climate Bonds Standard v3.0. The bonds received pre-issuance certification from the Climate Bonds Standard Board in May 2021.

"We are pleased that the launch of our Climate Bonds Standard certified green bonds demonstrates our ability to access green sources of financing at competitive pricing levels and we are committed to using the proceeds to contribute to a low-carbon economy," said Sembcorp group chief financial officer Eugene Cheng.

Wong Kim Yin, group president and chief executive of Sembcorp, noted "resounding support" from investors for the bond offering, and said it gives the group "strong confidence to drive firmly ahead" with its strategy of being a pan-Asian provider of sustainable solutions.

Sembcorp Industries closed flat at S$2.20 on Thursday, after the announcement.