Apeiron Bioenergy Raises US$37 Million Through Investment Grade Green Bond

Singapore headquartered Apeiron Bioenergy (Apeiron), a global player in bioenergy, has raised S$50 million (US$37 million), through the landmark issuance of a 5-year senior unsecured green bond guaranteed by Credit Guarantee & Investment Facility, a trust fund of the Asian Development Bank (CGIF), and an ASEAN+3 initiative to develop local currency bond markets.

Rated AA by S&P Global Ratings, the privately placed bond was well-received by investors and was oversubscribed despite a challenging macro environment.

The green bond was issued at par and bears a coupon rate of 4.487% with HSBC as the sole lead manager and is the First Bioenergy-Focused SGD Bond Issuance in Asia.

The proceeds will be applied towards capital expenditure and asset improvement for collection points and pre-treatment facilities of waste-based feedstocks like used cooking oil (UCO) in the Philippines, Thailand, and Vietnam.

The remainder will be used for general working capital requirements. The utilisation of proceeds will be guided by Apeiron’s Green Finance Framework endorsed by Sustainalytics, demonstrating the company’s commitment to integrating environmental, social, and governance factors into its operations.

UCO, one of Apeiron’s primary products, is one of the cleanest waste-based feedstocks for biofuel production offering the highest greenhouse gas emissions savings. It is a major feedstock for renewable biodiesel products like sustainable aviation fuel (SAF).

As the SAF market is expected to grow at a compound annual growth rate (CAGR) of 42% in the next decade, the availability of feedstock emerges as a crucial bottleneck. Leveraging Apeiron’s robust network of suppliers across Asia, where the collection of waste-based feedstocks remains relatively untapped, the company is well-positioned to serve as the hub for the mass consolidation of waste-based biofuel feedstocks in the region.

Chris Chen, Co-founder of Apeiron Bioenergy said, “We are delighted by the overwhelming response to our green bond issuance supported by CGIF, which demonstrates strong investor confidence and our shared mission with the Asian Development Bank.”

“This will allow Apeiron to expand our operations and maintain our position as a leader in the bioenergy sector. Building upon our operational and financial track record, we are fully committed to reducing reliance on fossil fuels and accelerating the growth of green energy.”