NUS raises S$300 million through second green bond to finance sustainable infrastructure projects

Following the success of its inaugural green bond in 2020, NUS will use proceeds from the second issuance to fund additional projects under its Green Finance Framework.

The National University of Singapore (NUS) has raised S$300 million from its second green bond after a strong reception to its inaugural issuance in May 2020. With a fixed coupon rate of 1.62 per cent, the 10-year notes were fully subscribed and will mature in 2031.

NUS holds a corporate rating of Aaa – the highest possible grade – from Moody’s Investors Service. United Overseas Bank Limited is the sole lead manager and bookrunner for the bond issuance.

The proceeds will go towards financing further green projects such as the E7 facility, which bridges research between the Engineering and Medical fields, the state-of-the-art Wet Science Building, as well as energy-related initiatives.

NUS will once again lean on the Green Finance Framework that provides the criteria and guidelines for the University to enter into green finance transactions. It is believed to be the first university in Asia to have launched such a framework on sustainability-linked finance, as part of its steadfast commitment to combat climate change.

The Framework is part of University’s Climate Action Plan 2030 which aims to create a carbon-neutral university, and to cool the campus by a substantial 4 deg C.

“Climate change is a crisis that we can no longer ignore. At NUS, we are transforming our campus to make our sustainable vision a reality,” said NUS Senior Vice President and Chief Financial Officer Mr Tan Kian Woo.

“We are proud to have raised S$300 million in our first green bond issuance last year. The successful issuance of the second green bond, at also S$300 million, underlines the trust between the institution and our investors. I am certain we can continue to strengthen our environmental efforts and put NUS in good stead for the future.”

The Green Finance Framework

The Green Finance Framework allows the University to partake in green finance transactions – including its first green bond issued last year. These transactions will be used to fund a strong pipeline of eligible projects with clear environmental benefits.

The green projects defined in the Framework are aligned to five focus areas:

  • Green buildings or precincts;
  • Renewable energy and energy efficiency infrastructure;
  • Sustainable water and wastewater management;
  • Pollution prevention and control; and
  • Sustainable management of natural resources and land use.

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