Apeiron Bioenergy (Apeiron), a Singapore-based integrated global player in bioenergy, has raised SGD 50 million ($36.95 million) through the landmark issuance of a five-year senior unsecured green bond guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank.

Apeiron said in a statement on Monday that 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 statement, the green bond was issued at par and bears a coupon rate of 4.487 percent 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 utilization 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.

It is noted that 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 percent 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 said it is well-positioned to serve as the hub for the mass consolidation of waste-based biofuel feedstocks in the region.

“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,” said Chris Chen, Co-Founder of Apeiron.

According to him, this funding will allow the firm to expand its operations and maintain its 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,” he added.

Meanwhile, CGIF Chief Executive Officer Hongwei Wang said that the firm is 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,” he added.

Sean Henderson, Co-Head of Debt Capital Markets, Asia-Pacific at HSBC said that this transaction highlights the firm’s 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,” he said.

Founded in 2007, Apeironis an integrated global player in bioenergy products, spanning from feedstocks to end- and by-products.

The company operates refineries and collection points across 10 countries.

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