Sembcorp Industries is pricing SGD benchmark sustainability-linked notes due 2032: Client note

Electricity advertisement for Sembcorp Industries. Note: Photo taken pre-CovidElectricity advertisement for Sembcorp Industries. Note: Photo taken pre-Covid

Sembcorp Industries, via its issuer Sembcorp Financial Services, is pricing a Singapore dollar benchmark offering of senior unsecured fixed-rate sustainability-linked bonds due 2032, according to a client note seen by Shenton Wire Wednesday.

The final price guidance for the notes is 2.66 percent, according to the client note.

A benchmark offering suggests at least S$250 million will be sold.

The sustainability performance target for the notes is greenhouse gas (GHG) emissions intensity of 0.4 tCO2e/MWh or lower by end-2025, the client note said.

Sembcorp Industries has said its GHG emissions intensity in 2020 was at 0.54 tCO2e/MWh, down from 0.55 in 2019 and 0.56 in 2018. The company has set reducing its GHG emissions intensity to 0.4 tCO2e/MWh by 2025, or a 25 percent reduction from 2020 levels, in line with the long-term goal of the 2015 Paris Agreement to limit global warming. The company said it is targeting net-zero emissions by 2050.

“Failure by the company to satisfy the Sustainability Performance Target (SPT) on the SPT observation date [31 December 2025], as determined by the external verifier and confirmed in the assurance report” would be a “step-up event” for the notes, the client note said.

The maturity date will be 6 April 2032, the client note said.

The coupon dates are expected to be 6 April and 6 October, with the first payment on 6 April 2022, the client note said.

The client note said the bonds will be offered under Sembcorp Industries’S$3 billion multicurrency debt issuance program.