The Singapore Management University (SMU) has issued its inaugural sustainability bond, raising $150 million.
The bond, which is the first by an autonomous university in Singapore, carries a coupon rate of 2.022%. The bond, issued on July 28, will mature on July 28, 2032.
The proceeds of the bond will be earmarked for financing and refinancing green and social projects that deliver “clear environmental and social benefits” under SMU’s sustainable financing framework that was established on June 27.
"This inaugural sustainability bond is more than just a financial instrument — it reflects our belief that universities must play a leading role in building a more sustainable and inclusive future,” says SMU president Lily Kong, who adds that the bond, launched during the university’s 25th anniversary, feels “especially meaningful”.
“As a university, we take seriously our role in shaping future-ready graduates who are not only intellectually agile, but also attuned to the pressing challenges of our time. By embedding sustainability in our operations and investments, we hope to lead with purpose and conviction,” she continues.
"This bond issuance is a strategic milestone for SMU as we align our financial strategy with our sustainability goals, and channel capital to where it matters most,” says Lim Boon Wee, SMU’s senior vice president of its administration department. “It enables us to finance infrastructure and initiatives that enhance environmental performance and social impact, while ensuring transparency and accountability to our stakeholders.”
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Moody’s has an “Aaa” rating on SMU.
Oversea-Chinese Banking Corporation (OCBC) is the sole lead manager and bookrunner for the bond issuance.
