Singtel prices first digital sustainability-linked bond with UOB, ADDX

MAINBOARD-LISTED telco Singtel : Z74 0%said on Wednesday (Apr 20) that it has successfully priced its first digital sustainability-linked bond in partnership with UOB and private markets platform ADDX.

The US$100 million 5-year digital sustainability-linked bond (SLB) will be drawn down under Singtel Group Treasury’s existing S$10 billion Euro Medium Term Note Programme and is guaranteed by Singtel. The SLB will carry a US dollar fixed coupon rate of 3.56 per cent per annum and mature on Apr 27, 2027.

The bond will be issued on Apr 27, 2022 with an effective Singdollar interest rate below 3 per cent per annum post-hedging.

UOB is the lead manager for the issuance, while the entire SLB will be tokenised on ADDX’s digital securities exchange.

Singtel said the net proceeds from this issue will be used to fund its ordinary course of business.

The group added that it is committed to reducing its scope 1 and 2 greenhouse gas emissions in tonnes of carbon dioxide equivalent by 2025, compared to a 2015 baseline.

If this target is not met, the group will make additional investments into defined green efforts of an amount of at least 0.25 per cent of the outstanding aggregate principal amount of the SLB.

Singtel shares closed 0.8 per cent or S$0.02 higher at S$2.60 on Wednesday, before the announcement.