Singapore’s Nanyang Technological University (NTU) is issuing SGD1bn (USD741m) in multicurrency bonds to support its sustainability goals, as reported by The Straits Times on October 11. The sustainability-linked bonds (SLBs) will be issued under a medium term note (MTN) program arranged by the Oversea-Chinese Banking Corporation (OCBC) [OCBC:SP]. Tan Kee Phong, Head of Capital Markets at OCBC, remarked that the university’s decision to launch SLBs helps pave the way for more organizations to use finance for a sustainable economic transition, as well as promote Singapore as an international sustainable finance hub.
The SLB issuance announcement came as part of NTU’s 15-year Sustainability Manifesto released on October 11. In the manifesto, the university also announced its target to achieve carbon neutrality by 2035, along with a 50% reduction of its emissions by the same year. Moreover, NTU aims to reduce its net energy use, water use, and waste generation by 50% by March 2026 from 2011 baseline levels. Other sustainability targets include Green Mark Platinum certification for all eligible buildings on campus, incorporation of sustainability in undergraduate common core curriculum, minimization of food waste, and the establishment of an NTU Sustainability Office to oversee and coordinate all sustainability efforts.
Subra Suresh, President of NTU, revealed that seven multinational organizations have signed on to be key partners in NTU’s sustainability journey, including HP [HPQ:US], Hyundai [005380:KS], and Tata Consultancy Services [TCS:IN]. At the announcement of the SLBs, the global bond credit rating agency Moody’s Investors Services gave NTU a credit rating of “Aaa”, the highest available rating.