Apeiron Bioenergy secures Asia’s first bioenergy-focused SGD bond issuance

Apeiron Bioenergy (Apeiron), a leading integrated global player in bioenergy, raised S$50 million (€33.8m) on 23 June, through the 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, according to the company.
The green bond was issued at par and bears a coupon rate of 4.487% with HSBC as the sole lead manager.
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 in the Philippines, Thailand and Vietnam, said Apeiron.
The remainder will be used for general working capital requirements, it added.
The utilisation of proceeds will be guided by Apeiron's Green Finance Framework endorsed by Sustainalytics.
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, according to the organisation.
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 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, it said.
Chris Chen, co-founder of Apeiron Bioenergy, commented: "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."
Hongwei Wang, chief executive officer of CGIF, stated: "We are pleased to support Apeiron in its inaugural green bond issuance which will certainly benefit them in diversifying funding sources to support its sustainable growth. The transaction showcases our commitment in promoting debut issuers and green bond issuances in ASEAN+3 region. The successful issuance of this bond also demonstrates market participants' confidence in CGIF and its guarantee product."
Sean Henderson, co-head of debt capital markets, Asia-Pacific at HSBC, said, "We are pleased to have supported this landmark transaction for Apeiron, the first ever SGD bond issuance from the bioenergy industry in Asia.
"This transaction highlights our commitment to support growth-stage companies that can facilitate the transition to a carbon-sustainable economy through increasing the availability of low-carbon alternative biofuels. The strong reception by investors also affirms the markets' support for companies that can deliver solutions for the new economy."