Sembcorp prices SGD-400m maiden green bond

Singapore-based utilities group Sembcorp Industries Ltd (SGX:U96) on Wednesday priced its first green bond offering, a SGD-400 million (USD 302m/EUR 248m) issuance that will support the company’s renewables portfolio.

The 2.45% green bonds, due 2031, were mainly placed to institutional investors chiefly in the Asia-Pacific, with some participation from Europe.

According to the announcement, the offering represents the first certified green bond under the Climate Bonds Standard by a Singapore-based energy company.

Sembcorp will use the net proceeds to finance or refinance new or existing eligible green projects.

The company recently unveiled a strategic plan to shift its portfolio from brown to green that includes quadrupling renewable energy capacity from 2.6 GW to 10 GW by 2025. Sembcorp’s renewable energy portfolio consists of wind, solar and energy storage assets in markets, including Singapore, Vietnam, China, India and the UK.

"The resounding support from investors for our inaugural Green Bond offering has given us strong confidence to drive firmly ahead with our strategy," commented group president and chief executive Wong Kim Yin.

"Tapping new sources of capital, including green financing, is a key thrust for Sembcorp as we reposition our portfolio and drive strategic green growth," said group chief financial officer Eugene Cheng.

DBS Bank Ltd and United Overseas Bank Ltd act as joint lead managers for the issuance.

(SGD 1.0 = USD 0.756/EUR 0.619)

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