“We are pleased to be the first telco in Asia Pacific region to issue an SLB. There has been strong demand for Optus’ inaugural SLB issuance from the investor community and we are highly encouraged that our efforts to link financing to sustainability has been well received,” Arthur Lang, group chief financial officer for Singtel, said in the statement.
The bond, which will be issued on 24 November, is guaranteed by Optus and certain subsidiaries, and has been launched under Singtel’s sustainability financing program, the filing said.
The sustainability-linked bond, which follows the new Singtel Group Sustainability-Linked Bond framework, commits Optus to a target of reducing its absolute greenhouse gas emissions by 25 percent by 2025, compared with 2015 levels, the filing said. That is in line with Singtel’s overall goal of reaching a 42 percent reduction by 2030, the filing said.
The bond’s coupon rate will have a step-up margin of 0.25 percent a year from 24 November 2025 if the target isn’t met, the filing said.
The proceeds from the bond sale will be used for general corporate purposes, the filing said.
The maturity date will be 24 November 2028, the filing said.
ANZ Banking Group, Commonwealth Bank of Australia and Westpac Banking Corp. acted as joint sustainability coordinators, lead managers and bookrunners, the filing said.