Sembcorp Industries pricing 7-year sustainability-linked bonds: Client note

Green shoots. Photo by Markus Spiske on UnsplashGreen shoots. Photo by Markus Spiske on Unsplash

Sembcorp Industries is pricing seven-year senior unsecured fixed-rate sustainability-linked bonds denominated in Singapore dollars, according to a client note seen Wednesday by Shenton Wire. 

The initial pricing guidance for yield was for the 3.95 percent area, with landing guidance for 3.5 percent to 3.6 percent, with the notes’ price expected at 100.25 of face value, the client note said. 

The sustainability performance target is for a greenhouse gas (GHG) emissions intensity goal by end-2025, the client note said. Failing to hit the goal would result in a one-time adjustment of raising the yield by 25 basis points a year from the first interest payment date, the client note said.

The proceeds will be used for general corporate purposes and to refinance existing debt, the client note said.

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

The notes, offered via subsidiary Sembcorp Financial Services, will be issued under the S$3 billion multicurrency debt issuance program, the client note said.

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