Apeiron Bioenergy Raises $50Mn Via Investment Grade Green Bond

* Guaranteed by Credit Guarantee & Investment Facility, a trust fund of the Asian Development Bank, the 5-year senior unsecured green bond has been rated AA by S&P Global Ratings. * The oversubscribed bond was marketed on a private placement basis and garnered strong interest from institutional and strategic investors, including leading fund managers and government-linked entities. * The proceeds will be deployed for general working capital and capital expenditure to expand its network of used cooking oil collection points and treatment facilities. * Apeiron Bioenergy will capitalise on the growing number of global projects related to renewable diesel like sustainable aviation fuel, through its used cooking oil product, one of the cleanest waste-based feedstocks.

Apeiron Bioenergy, an integrated global player in bioenergy recently raised S$50 million through the landmark issuance of a five-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. 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 (UCO) in the Philippines, Thailand, and Vietnam. The remainder will be used for general working capital requirements. The utilisation of proceeds will be guided by Apeiron’s Green Finance Framework endorsed by Sustainalytics, demonstrating the company’s commitment to integrating environmental, social, and governance factors into its operations.

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. 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 (CAGR) 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.

Chris Chen, Co-founder of Apeiron Bioenergy said, “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.”

Founded in 2007, Apeiron Bioenergy is headquartered in Singapore. The company operates refineries and collection points across 10 countries.

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