Sembcorp secures first-ever sustainability-linked bond from IFC

A total of $675m was raised.

The first sustainability-linked bond (SLB) was launched in Singapore, raising S$675 million for Sembcorp Industries (Sembcorp), the International Finance Corporation (IFC) announced.

This is also supported by an investment of $150m from IFC, which marks its first investment globally as an investor in an SLB. 

IFC explained that, unlike traditional green bonds, SLBs involve issuers pledging to improve their performance against tailor-made environmental, social, and governance targets.

Through Sembcorp Financial Services Pte. Ltd, Sembcorp priced its inaugural SLB at a coupon rate of 2.66%. Net proceeds from the SLB will be used for general corporate working capital requirements of the group, refinancing of existing debt and agreements under sustainable projects.

President and CEO Wong Kim Yun of Sembcorp Industries, reiterated how this deal validated their current strategy and commitment.

“Sustainability is Sembcorp’s business, and we are fully committed to transforming our portfolio from brown to green. The issuance of our inaugural SLB underscores this commitment. We are heartened that IFC has chosen our issuance to be its first investment in a SLB globally. Their support validates our strategy and spurs us on in our drive toward supporting the global energy transition and a low-carbon economy.”