United Overseas Bank Acts for NUS on Uni's Third Green Bond Deal

Singaporean bank UOB was the sole lead manager and sole book-runner for the National University of Singapore (NUS), as it priced a S$340 million 10-year green bond at a coupon of 3.268%.

This is NUS’ third green bond since the inception of its Green Finance Framework in 2020, illustrating its commitment in ESG financing and contributing to the circular economy as a leading global university.

Proceeds from this green bond will be used to finance green projects and infrastructure on campus.

Tan Kian Woo, Senior Vice President & Chief Financial Officer, NUS, said: “We are pleased to price our third green bond in the market following two previous successful issuances since the establishment of the NUS Green Finance Framework in 2020.”

“This latest green bond issuance is in line with and fulfills NUS’ long-standing commitment to contribute towards environmental sustainability by financing green projects and infrastructure on campus, and support the Singapore Green Plan 2030.”

The bond, priced on 21 March 2023, will be issued on 31 March 2023 and is expected to be rated Aaa by Moody’s Investor Services.

This is the first bond from a public sector issuer in the SGD market this year. With a tenor of 10 years, this also represents the longest-dated rated senior issuance in the SGD bond market since October 2021.

Amid the inverted yield curve since last year, there has been a preference among investors to invest in bonds with a tenor of five years or shorter.

The issuance, priced amid the volatility in global capital markets, is testament to NUS’ solid credit quality and strong standing in the fixed-income market.

Edmund Leong, Head of Group Investment Banking, UOB, said: “We are pleased to partner with NUS as the sole lead manager and book-runner of its third green bond issuance in four years. Despite the relatively volatile global market environment, NUS’ ability to price a 10-year benchmark green bond underscores its strong credit quality as an Aaa issuer. This issuance could potentially pave the way for other high-grade issuers to tap longer-dated issuances in the SGD bond market. As the One Bank for ASEAN, we continually work with issuers across the region as they tap the capital markets to fund their growth.”

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