SINGAPORE, March 24, 2023 /PRNewswire/ -- UOB was the sole lead manager and sole bookrunner for the National University of Singapore (NUS), as it priced a S$340 million 10-year green bond at a coupon of 3.268 per cent. The bond, priced on 21 March 2023, will be issued on 31 March 2023 and is expected to be rated Aaa by Moody's Investor Services.
The issuance, priced amid the volatility in global capital markets, is testament to NUS' solid credit quality and strong standing in the fixed income market.
This is the first bond from a public sector issuer in the SGD market this year. With a tenor of 10 years, this also represents the longest-dated rated senior issuance in the SGD bond market since October 2021. Amid the inverted yield curve since last year, there has been a preference among investors to invest in bonds with a tenor of five years or shorter.
Transaction highlights:
* NUS priced a benchmark green bond in the SGD bond market on 21 March 2023 as overnight global markets saw some recovery following the volatility over the weekend.
* Given the yield curve inversion since last year, where longer dated SORA rates are lower than the shorter dated rates, there has been a general preference among investors to invest in bonds with a tenor of five years or shorter.
* The successful issuance and pricing, at a yield of 3.268 per cent, is testament to NUS' solid credit quality. As a basis of comparison, the 10-year Singapore Government Securities (SGS) was trading around 2.88 per cent on 21 March 2023.
* This is NUS' third green bond since the inception of its Green Finance Framework in 2020, illustrating its commitment in ESG financing and contributing to the circular economy as a leading global university.
* Proceeds from this green bond will be used to finance green projects and infrastructure on campus.
Mr Edmund Leong, Head of Group Investment Banking, UOB, said, "We are pleased to partner with NUS as the sole lead manager and bookrunner of its third green bond issuance in four years. Despite the relatively volatile global market environment, NUS' ability to price a 10-year benchmark green bond underscores its strong credit quality as an Aaa issuer. This issuance could potentially pave the way for other high-grade issuers to tap longer-dated issuances in the SGD bond market. As the One Bank for ASEAN, we continually work with issuers across the region as they tap the capital markets to fund their growth."
Mr Tan Kian Woo, Senior Vice President & Chief Financial Officer, NUS, said, "We are pleased to price our third green bond in the market following two previous successful issuances since the establishment of the NUS Green Finance Framework in 2020. This latest green bond issuance is in line with and fulfills NUS' long-standing commitment to contribute towards environmental sustainability by financing green projects and infrastructure on campus, and support the Singapore Green Plan 2030."
