Surbana Jurong Group has priced a $250 million sustainability-linked bond due in 2031.
The urban, infrastructure and managed services consulting firm said the facility – more than six times oversubscribed – is the first Singapore dollar-denominated sustainability-linked bond.
It is also the first public sustainability-linked bond issuance from a South-east Asia-based company.
The 10-year Singapore dollar bond at a coupon rate of 2.48 per cent drew “tremendous interest from high-quality institutional investors and private banks”, Surbana Jurong said, with more than $1.7 billion in orders.
The proceeds will be used to fund growth, refinance credit lines and provide working capital.
The firm added that the funds will also boost its efforts to translate the United Nations Sustainable Development Goals, set out in the 2030 agenda, “into concrete, measurable actions”.
“The built-environment industry plays a vital role in responding to the climate emergency,” said group chief executive Wong Heang Fine. “Now, by tying our sustainability targets to our bond financing terms, we are drawing a clear alignment between our financing strategy and our business strategy, anchored in environmental, social and corporate governance.”
The firm aims to reduce net emissions for staff based in the offices of its member companies and at its headquarters at the Surbana Jurong Campus in the Jurong Innovation District when it is completed. It has pledged to achieve net zero carbon emissions at the campus by 2030.