Vena Energy, one of Asia’s leading independent power producers (IPP), has become the first Singapore-based company to issue green bonds dominated in US dollars, hoping to attract global investors in the pure renewable energy space.
Vena Energy said it has successfully issued a total of $325 million in fixed-rate green bond under Regulation S. The maturity was set at five years with a 3.133 per cent rate.
Regulation S provides an SEC-compliant way for US and international companies to raise capital outside of the US. The green bond proceeds will be used to refinance existing corporate loans for the development, construction, and operation of eligible green projects in line with Vena Energy’s Green Financing Framework, the company said.
The framework was established in 2018 to enhance the company’s planning and disclosure practices as well as providing transparency and accountability to all its stakeholders, according to Vena Energy.
Rated BBB- by Standard & Poor’s and listed on the Singapore Exchange, the green bond is issued under the company’s Euro Medium Term Notes Programme established in November 2019. The issuance was facilitated by Crèdit Agricole CIB, DBS Bank Ltd, ING, and MUFG. ABN AMRO, Banca IMI, BNP PARIBAS, and SMBC Nikko served as joint lead managers.
“This a significant milestone for Vena Energy as we access the international capital markets, and an affirmation of the positive contributions that we have made to the environment and host communities in the Asia-Pacific region,” said Vesa Energy CEO Nitin Apte.
Headquartered in Singapore, Vena Energy manages the development, design, procurement, construction, operation, and maintenance of its solar, wind and battery energy storage systems in Australia, India, Indonesia, Japan, South Korea, Philippines, Taiwan, and Thailand.
“Vena Energy’s benchmark USD 2025 bond is truly unique in the Asian EM bond context, offering global bond investors a chance to participate in an investment-grade credit that is well-diversified across Asia and backed by high quality contracted revenues,” said Helge Muenkel, Head of Asia-Pacific Global Capital Markets at ING.
Vena Energy’s issuance comes as global issuance of green bonds is expected to hit $300 billion this year, according to a new report by Moody’s Investors Service. Social and sustainability bond issuance will reach $25 billion and $75 billion, respectively, Moody’s added.
As the social and sustainability bond markets grow and mature, Moody’s expects issuance from these segments to become more diversified in terms of sector and region, similar to trends seen in the green bond market.
Source Deal Street Asia