NUS green bond raises $300 million to power sustainability projects
SDE4, Singapore’s first new-build net-zero energy building launched in January 2019, is one of NUS’ green projects
NUS has raised $300 million through the issuance of its inaugural green bond, which will go towards financing green projects under the University’s new Green Finance Framework.
It is believed to be the first university in Asia to launch a framework on sustainability-linked finance, and to issue a green bond.
The Green Finance Framework provides the overarching criteria and guidelines for NUS to enter into green finance transactions (GFTs) — including its first green bond — and is a move by the University to extend its efforts in addressing climate change and environmental sustainability.
“Tackling the climate change crisis is one of the biggest global challenges. This green bond, and our new Green Finance Framework, will enable us to play an active role in addressing the growing crisis. We are upholding our commitment to build a more sustainable future,” NUS President Professor Tan Eng Chye explained.
The 10-year bond will mature in 2030 and carries a fixed coupon rate of 1.565 per cent. DBS Bank is the sole lead manager and bookrunner for the deal.
NUS Deputy President (Administration and Finance) Mr John Wilton said, “The strong demand that we have seen in our first green bond not only reflects investors’ trust in NUS as an issuer, but also the rise of the green financing sector.”
The amount raised from the inaugural green bond, as well as all net proceeds from the University’s GFTs, will be used to fund eligible green projects under the five focus areas defined in the Green Finance Framework:
- Green buildings or precincts
- Renewable energy and energy efficiency infrastructure
- Sustainable water and wastewater management
- Pollution prevention and control
- Sustainable management of natural resources and land use
The projects will further support NUS’ continuous efforts in incorporating sustainability in its education, research, operations, planning, construction and engagement, a multi-faceted approach adopted by the University to contribute to a sustainable future.
The SDE4, Singapore’s first new-build net-zero energy building launched in January 2019, is one of NUS’ key green projects. Two other buildings — SDE 1 and SDE 3 — as well as the new Techno Edge Canteen are also undergoing renovation to be repurposed into super low energy buildings. The four buildings will create a green precinct with plans for more green buildings to be added to the vicinity to provide a model for sustainable development.
A NUSustainability Cluster has also been set up by the University to bring together faculty members, students and staff to address sustainability challenges. In addition, a new research centre focusing on harnessing nature to tackle climate change will be established this year.
“The Green Finance Framework augments the University’s existing work to carry out cross-disciplinary research for a better and more sustainable future for Singapore and the world. The Framework facilitates collaborations between academia and industry to translate research into solutions for real-world problems,” said Prof Tan.
See press release.