Nanyang Technological University pricing 15-year sustainability-linked bonds

Singapore one dollar bill

Singapore’s Nanyang Technological University is pricing 15-year Singapore dollar senior unsecured fixed-rate sustainability-linked benchmark bonds, according to a client note seen by Shenton Wire.

The initial price guidance is in the 2.35 percent area, with final coupon subject to market conditions and demand, the client note said.

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

The sustainability performance target will be to achieve carbon neutrality for the NTU Yunnan Campus by 2035, while aiming to reduce gross carbon emissions intensity by at least 50 percent from the 2019 baseline, the client note said. The observation date for the target is end-2035, the note said.

Failing to reach the target will trigger a one-time payment of 50 basis points at maturity on the outstanding principal amount of the notes, with the payment going to either additional investments into various research initiatives in climate research or technologies related to climate change mitigation or adaptation, or toward the purchase of renewable energy certificates or certified carbon offsets, the client note said.

The proceeds will be used for the university’s sustainability research and initiatives, delivery of educational programs and generational upgrade of infrastructure, the client note said.

The notes will be in denomination of S$250,000, and a listing on SGX will be sought, the client note said.

Nanyang Technological University’s issuer rating from Moody’s is Aaa (Stable), with the notes expected to be rated at Aaa by Moody’s, the note said.

The coupon dates will be 20 April and 20 October, with the first payment on 20 April 2022, the note said.

The joint lead managers and bookrunners are DBS Bank and UOB, the note said.